The US Treasury has said it is planning to borrow nearly $1.02 trillion in the fourth quarter of this year, the largest amount since the start of the coronavirus pandemic in early months of 2020.
The estimated amount is $312 billion higher than the previous expectation made in August "due to the lower beginning of quarter balance, somewhat offset by a lower end-of-quarter balance and higher receipts," Treasury Department said in a statement late Monday.
While the Treasury borrowed $103 billion in the July-September period this year, it ended the third quarter with a cash balance of $215 billion.
It estimates a cash balance of $650 billion by the end of December.
The department also said it expects to borrow $476 billion in the January-March period of 2022, forecasting a cash balance of $650 billion by the end of the first quarter next year.
The Treasury's actual borrowing will depend on the US Congress' decision on raising or suspending the country's debt limit.
Treasury Secretary Janet Yellen has repeatedly warned lawmakers in recent months that a debt default would be catastrophic and likely place the US on path to a recession.