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               US Increases Borrowing Authority, Averting Default

   The U.S. Congress has increased the government`s borrowing authority
   for the next 13 months, averting the looming threat of a default on its
   debts at the end of this month.
   The Senate approved the legislation Wednesday on a 55 to 43 vote,
   completing action on the measure and sending it to President Barack
   Obama for his signature.
   Mr. Obama, a Democrat, and his Republican opponents in Congress have
   often engaged in contentious debate over whether to increase the
   country`s debt ceiling. One of the disputes led to last October`s
   16-day partial government shutdown.
   The U.S. debt now totals $17.3 trillion, but the government needs to
   continue to borrow more money to pay its bills.
   The new borrowing authority extends to March 2015. The U.S. government
   has incurred chronic annual budget deficits adding to the long-term
   debt total. The deficits totaled more than $1 trillion during the worst
   of the country`s recession several years ago, but the figure is
   expected to fall to $514 billion this year as the American economy
   improves and tax revenues grow as a result.
   Conservative lawmakers often have attempted to use the debt ceiling
   negotiations to try to force Mr. Obama to cut government spending. This
   time, he refused to negotiate, saying Congress needed to approve the
   new borrowing authority so the government could pay debts it had
   already incurred.
   In a key vote Tuesday, leaders of the Republican-controlled House of
   Representatives agreed to a vote increasing the borrowing authority
   without attaching any conditions. It narrowly passed, mostly with
   Democratic votes, and set the stage for Senate approval.
   The United States and Denmark are the only two countries in the world
   that impose a limit on government borrowing.
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   [1]http://www.voanews.com/content/us-increases-borrowing-authority-aver
   ting-default/1850254.html

References

   1. http://www.voanews.com/content/us-increases-borrowing-authority-averting-default/1850254.html