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Saturday, May 25, 2024

USA. Joe Biden, US President, signed the State Debt Limit Act. Bankruptcy of the country away

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The bill suspending the state debt limit until 2025, adopted by the US Congress, was signed by President Joe Biden on Saturday. According to the Treasury Department of Finance, without such a decision, the US government would run out of funds to cover all its liabilities next week.

Both parties – Republicans and Democrats – agreed that spending cuts would not affect the Senate’s ability to pass additional relief measures Ukraine and other military expenditures. The act suspends the debt limit until January 2025 and freezes budget expenditures in fiscal year 2024 – apart from defense expenditures – at the current year’s level. The agreement provides for an increase in these expenses by 1 percent in the following year.

Read also: Important deal in the US. President Biden: We prevented the economy from collapsing

According to the analysis, this will reduce it budget deficit by $1.5 trillion over 10 years.

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Bankruptcy far away

Suspension of the debt ceiling last set by Congress at $31.4 trillion is necessary to United States avoided bankruptcy. According to the finance ministry (treasury department), without such a decision, the government would run out of funds to cover all its liabilities as soon as next week.

Main photo source: PAP/EPA/MICHAEL REYNOLDS/POOL



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