FROM THE OFFICE OF PUBLIC AFFAIRS

Now that the tax season has ended, I am pleased to announce today that we now estimate that this quarter will see the largest quarterly reduction in outstanding marketable debt of the Federal government in our nation's history. Figures released earlier today by the Treasury Department indicate that we expect to pay down $185 billion of our nation's marketable debt this quarter and a projected additional $47 billion in the next quarter.

These favorable results are in large part attributable to strong growth in revenues associated with a robust domestic economy. The bulk of the revenue strength has appeared in tax payments from individuals and corporations in connection with year 2000 liability. In addition, early collections data suggest that payments on 1999 liabilities in April were very strong.

Taken together with developments earlier in the year, this quarter's strong results will bring our total reduction of publicly held debt for the fiscal year to $216 billion. Revised estimates for the budget surplus will be contained in the Administration's Mid-Session Review.

By the end of this fiscal year we will have reduced the debt held by the public by more than $350 billion - or almost 10 percent - in just 3 years. Let me add that we plan to maintain our announced strategy with respect to debt buybacks and the issuance of long-term debt. As always, the Treasury Department will announce funding plans for the quarter this Wednesday as part of its scheduled quarterly refunding announcements.

Today's figures are projections and therefore may change. They do, however reflect a welcome continuation of the virtuous cycle that American have recently enjoyed: of reduced public borrowing, lower interest rates, and more rapid economic growth, leading, in turn, to even higher budget surpluses and faster economic growth. Thank you.