View Header


Office of the Press Secretary

For Immediate Release August 2, 1999
                 THE LARGEST DEBT REDUCTION ON RECORD                 
                            August 2, 1999                            

Today, We Learned That We Will Pay Down $87 Billion in Publicly Held Debt this Fiscal Year - The Largest Pay Down on Record. In the Last Two Years, We Have Paid Down $142 Billion in Publicly Held Debt.

The Largest Debt Pay Down On Record. We have reduced publicly held debt approximately $87 billion this fiscal year* - the largest on record after adjusting for inflation. In the last two years, we have paid down $142 billion in debt. Since its peak of $3.830 trillion in March of 1997, we will pay down the debt to $3.638 trillion this quarter.

The publicly held debt is now $1.7 trillion less than was projected in 1993 when President Clinton took office.

Real Benefits for American Families and Businesses and a Stronger Economy Overall. President Clinton's and Vice President Gore's policy of fiscal discipline has turned our fiscal situation around, and has changed our task from financing a deficit to managing a surplus. As a result of this achievement, the Clinton/Gore Administration has already begun to pay down the nation's debt. This debt reduction means real benefits for American families and businesses and will help fuel sustained economic growth.

Now Is Not The Time To Change Course. The House just passed tax proposals that would generate $3 trillion in costs from the tax plan in the second ten years.

Note: The $14 billion pay down this quarter consists of $11 billion pay down of marketable debt and a $3 billion pay down of non-marketable debt (savings bonds, etc.) announced by Treasury today.

# # #