This was expected to be a difficult task as the government was due to make more than $60 billion in semiannual interest payments to trust funds such as Social Security and may default on payments to bond holders.

Various budgetary strategies are planned to keep the government below the ceiling, but it wasn't expected to be enough to prevent default on June 28 if Congress did not raise the limit and the Treasury would not be able to get the government past this deadline for trust fund payments.

The strategies planned included suspension of reinvestments of Treasury securities in the Exchange Stabilization Fund, diversion of interest payments due to the Civil Services Retirement Fund, swapping assets from the Federal Financing Bank to the retirement fund, and shifting money from a federal savings plan to prevent the government from defaulting on payments to bondholders. These efforts would keep the debt ceiling intact, although it would be breached by about $30 billion in May and June.

Another possibility was to delay Treasury securities auctions, which would raise the government's interest costs in the long run. The government was expected to increase the size of its quarterly auctions of five-year notes rather than sell larger quantities of shorter term securities.

In December, the administration asked for a $750 billion increase in the debt ceiling, but the request was hung up on Capitol Hill. Republicans tended to balk at an increase while Democrats blamed President Bush's tax cuts for a financial quagmire.

Budget surpluses of the 1990s have been squandered, and the government has backslided into greater debts and deficits. Further, $30 billion is the amount being sought by House leaders for the war on terrorism. If the debt ceiling is increased, this request will likely be approved. It was predicted that the Senate could pose a problem acting promptly on a debt ceiling increase.

Tax receipts from April 15 were expected to keep the debt ceiling in check for a few months, but the tax receipts were not as great as anticipated. The unexpected decrease in tax receipts will require more borrowing. Analysts are doubling their projections of the federal budget deficit for this fiscal year.

Treasury Undersecretary Peter Fisher, frustrated by the political logjam, said repeatedly that Congress must achieve an increase in the debt ceiling before the end of June.