Reuters reported that US President Barack Obama endorsed the draft budget for the next two years. The bipartisan budget deal raises the federal borrowing limit. The bill suspends a discussion of raising the debt ceiling until March 2017.
So the new budget is approved as a solution to a looming budget crisis. However, the deal leaves room for increasing the public debt. Since the debt limit is lifted, it allows the Treasury to borrow whatever it needs until March 2017. The Treasury Department said that the government would default on its debt if the statutory borrowing limit had not been raised by November 3.
According to the recent data of the US Treasury, the public debt totals $18.15 trillion. US GDP equals $18.04 trillion.
