Washington - The Treasury Secretary Jacob Lew warned Wednesday that the government will have no more flexibility after October 17 to operate under the US debt cap.
Lew told Congress that after months of juggling spending to meet government commitments without added borrowing, those “extraordinary measures” will be exhausted by that date.
That will leave the Treasury with only $30 billion in cash to meet ever-mounting demands.
“This amount would be far short of net expenditures on certain days, which can be as high as $60 billion,” Lew said in a letter addressed to John Boehner, speaker of the House of Representatives.
“If we have insufficient cash on hand, it would be impossible for the United States of America to meet all of its obligations for the first time in our history.”
Lew urged the House to increase the country's statutory borrowing ceiling, which has been locked at $16.7 trillion since May.
“Extending borrowing authority does not increase government spending; it simply allows the Treasury to pay for expenditures Congress has already approved,” he wrote.
“As such, I respectfully urge Congress to act immediately to meet its responsibility by extending the nation's borrowing authority.” - Sapa-AFP