Page last updated at 22:21 GMT, Friday, 12 February 2010

President Obama increases US debt limit

US President Barack Obama
President Obama has pledged to reduce the US deficit

President Barack Obama has signed a law increasing the limit on how much the US government can borrow.

The debt limit was raised to $14.3 trillion (£9.1tn) from $12.4tn, and will allow the government to function for the rest of the year.

Mr Obama also approved legislation that requires new spending to be offset with cuts elsewhere.

He is seeking to address the record US budget deficit, which is predicted to reach $1.56tn this year.

The "pay-as-you-go" or "paygo" rule was in place in the 1990s - the last time there was a federal budget surplus.

The House of Representatives passed the debt limit bill last week, sending it to the White House for the president's signature.

The US Treasury was expected to exceed the current $12.4tn debt limit within weeks. Failure to raise the limit would have roiled financial markets.

Print Sponsor

Obama unveils $3.8tn budget plans
01 Feb 10 |  Americas
Analysis: Obama's deficit dilemma
01 Feb 10 |  Americas
Obama cancels Moon return project
01 Feb 10 |  Science & Environment
Obama makes jobs top US priority
28 Jan 10 |  Americas

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2019 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific