Statement on the Budget Surplus and Debt Reduction

When I came into office, the budget deficit was a record $290 billion, confidence in the economy was shaky, and unemployment was too high. Seven years of fiscal discipline have turned that situation around, creating an era of record budget surpluses.

Today we received more good news that our economic strategy is working and that the budget surplus is growing. The Treasury Department released Government financial information showing that the comparable budget balance for the first half of this fiscal year improved by more than $30 billion from the first half of last year. This keeps us on track to pay down a record $300 billion of debt over 3 years.

In addition, today, for the third time this year, the Treasury Department is buying back some of our debt. If we maintain our fiscal discipline, we can make America debt-free by 2013 for the first time since Andrew Jackson was President. This will keep interest rates lower, helping to maintain strong investment and growth while saving money for American families.