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(ICIS) -- Final votes in the US Congress
were expected late on Monday and early on Tuesday on a plan to raise the
government’s borrowing authority, cut federal spending and provide an 11th hour
rescue from a possible US default.
The US House of Representatives was scheduled to hold a final vote on
Monday night on the debt ceiling package that was worked out between Republican
leaders in Congress and the White House.
The broad outlines of that deal were
announced by President Barack Obama on Sunday night, although he warned that the
agreement to end the US fiscal crisis would not be certain until approved by
both the House and Senate.
Under the proposed agreement, the federal government would put a hold on
current spending and cut expenditures by as much as USD 2.5 trillion (EUR 1.7
trillion) over 10 years, with spending reductions for both domestic and military
programmes.
If approved by Congress, the deal would provide for an immediate USD 1
trillion increase in the nation’s borrowing authority or debt ceiling, which is
currently at USD 14.3 trillion. That USD 1 trillion in the debt limit increase
would be matched by about $1 trillion in first stage spending cuts over 10
years.
An additional USD1.5 trillion in borrowing authority would kick in later
this year, providing that a special congressional debt-reduction committee comes
up with up to USD 1.5 trillion in further spending cuts by late
November.
mrcplast.com
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