News

US debt to hit proposed ceiling by end-February

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Source: AFP

Fri, 05 Feb 2010 1:35:47 CST

The US debt is on track to hit a congressionally proposed debt ceiling of 14.3 trillion dollars by the end of February, the Treasury said Wednesday, a day ahead of a key vote to raise it to that level.

"Based on current projections, Treasury expects to reach the debt ceiling as early as the end of February. However, the government's cash flows are volatile, making it difficult to forecast a precise date," the Treasury said in a statement.

The current limit on the public debt of the United States is 12.374 trillion dollars.

The US debt exceeded 12.349 trillion dollars on Monday, according to Treasury data.

The US House of Representatives will vote Thursday on whether to raise the US debt limit to a historic 14.3 trillion dollars, allowing the United States to borrow another 1.9 trillion dollars.

House Majority Leader Steny Hoyer said representatives would take up the measure a week after the Senate approved the higher debt ceiling in a 60-39 vote.

In December, both houses agreed to increase the debt limit by an interim amount of 290 billion dollars to ensure the US government would continue to function.

The Senate also last week passed an amendment to legislation raising the debt ceiling that requires new budget items to be paid for, dubbed "pay-as-you-go."

The measure is intended to prevent the federal government from spending money it does not have and to control the massive US budget deficit.

The House has adopted a similar measure.