US President Barack Obama announced a last-minute deal on Sunday to avert a possible default by raising the country's debt ceiling, and urged Congress to "do the right thing" by approving the bill, which is set to be voted on Monday.
REUTERS - President Barack Obama on Sunday announced a last-minute deal to raise the U.S. borrowing limit and urged lawmakers to “do the right thing” and approve the proposed agreement to avert a catastrophic default.
A look at the debt deal
- The deal would allow President Barack Obama to raise the country’s debt ceiling in three steps.- The deficit would be cut by $2.4 trillion over 10 years, and would be done in two phases: an initial spending cut of $917 billion followed by a second cut of $1.5 trillion.- About $350 of the $917 billion sum could be cut from defense and security programmes.- A bipartisan 12-member Congressional committee would be set up to come up with a further $1.5 trillion in budget savings.- The committee would be required to agree on at least 1.2 trillion in savings before a November 23 deadline, otherwise automatic spending cuts in programmes across the board will kick in starting in 2013.- The plan also calls for Congress to vote on a balanced budget amendment to the Constitution by the end of the year.
Major holders of US debt
FOLLOW THE US DEBT IN REAL TIME
Date created : 2011-08-01