US giving aid to countries like India that own billions in Treasury securities, warns report
Washington, June 3 : The United States is proving millions of dollars in foreign aid to countries, including India, that it borrows billions from, a Congressional Research Services report has claimed.
The report shows that in fiscal year 2010, Washington handed out a total of 1.4 billion dollars to 16 foreign countries that held at least 10 billion dollars in Treasury securities, including China (27.2 million dollars), Brazil
(25 million dollars), Russia (71.5 million dollars), India (126.6 million dollars), Mexico (316.7 million dollars) and Egypt (255.7 million dollars), Fox News reports.
According to the Treasury Department, China is the largest holder of U. S. Treasury bonds with 1.1 trillion dollars as of March. Brazil held 193.5 billion dollars, Russia had 127.8 billion dollars, India owned 39.8 billion dollars, Mexico held 28.1 billion dollars and Egypt had 15.3 billion dollars.
The US had reportedly given out the aid money to these countries for varied causes like HIV/AIDs prevention, combating weapons of mass destruction, fighting tuberculosis, and counter-terrorism efforts.
Senator Tom Coburn (R-Okla) said that report has rung an alarm bell.
"Borrowing money from countries who receive our aid is dangerous for both the donor and recipient. If countries can afford to buy our debt, perhaps they can afford to fund assistance programs on their own,” Coburn said in a written statement.
"At the same time, when we borrow from countries we are supposedly helping to develop, we put off hard budget choices here at home. The status quo creates co-dependency and financial risk at home and abroad," he added.
The State Department, however, has remained mum about the issue till now. (ANI)