Treasury Expects to Borrow 392B in 1Q

WASHINGTON (AP) - The Treasury Department says it expects to
borrow $392 billion in the current quarter to finance the largest
annual budget deficit in history.

The projection is $86 billion lower than the estimate the
department issued in November, when it expected to borrow $478
billion. The improvement is largely due to higher-than-expected
repayments of about $90 billion in bailout funds by large banks.

The department also says it borrowed $260 billion in last year's
fourth quarter, below an earlier estimate of $276 billion. Treasury
expects to borrow $268 billion in the second quarter of this year.

The projections come the same day that President Barack Obama
issued a $3.83 trillion budget that forecast a record $1.56
trillion deficit, an increase from the $1.42 trillion deficit in
the 2009 budget year.

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