“America Reaches Consensus to Avoid Borrowing Limit and Address Debt Crisis Through Spending Cuts”

America to get rid of the threat of debt crisis by avoiding the borrowing limit. Reports suggest that the government may tighten spending cuts to avoid the limit. The Democrats’ wish is implemented by accepting the Republicans’ proposal.

A consensus has been reached on the debate whether to raise the borrowing limit or cut spending to escape the debt trap. The general consensus is that the government will not have to meet the borrowing limit until January 2025. However, the spending cuts will be reflected in the general budget presented in 2024 and 2025, as well as in the covid relief and food aid schemes. The United States currently has a debt of 31.4 trillion dollars, i.e. 2580 lakh crore rupees. The US must raise the borrowing limit by June 1 if it is to continue spending.

The decision is the result of the efforts of Joe Biden, Speaker of the House of Representatives Kevin McCarthy and other members of Congress that have been going on for days. President Joe Biden avoided visiting Australia and Papua New Guinea, which was supposed to be held after the G7 meeting in Japan, to take the helm for problem solutions. Kevin McCarthy said that although Biden wasted a lot of time in the months-long discussion, he was able to reach a decision in principle that was in the best interest of the American people.

At the same time, Joe Biden stated that this is an important step forward and that all agreements can be built on mutual compromises. With a consensus, a majority of the Democrats in the Senate and a majority of the Republicans in the House of Representatives will get public approval of the debate decision. Once signed by the President, the decision becomes permanent.