WASHINGTON, Jan 20 (Reuters) - The U.S. Senate on Wednesday took up a measure that would raise the national debt limit as the White House called the measure 'critically important' to government operations and to ensure America's continued creditworthiness.
'The administration strongly supports passage of an increase in the public debt limit,' the White House said in a statement.
A tough vote looms in Congress on raising the legal limit for the government's borrowing. Without fresh legislation, the Treasury Department will not have the authority to borrow beyond the $12.4 trillion that Congress authorized last December.
'Such an increase is critically important to make sure that financing of federal government operations can continue without interruption and that the creditworthiness of the United States is not called into question,' the White House said.
Democrats are expected to raise the limit to over $13 trillion to avoid having to revisit the politically difficult issue before mid-term congressional elections due in November.
The vote is likely to draw unwelcome attention to the record $1.4 trillion deficit posted by the Obama administration in the fiscal year 2009 as it tried to stimulate economic growth after the country's worst recession in 70 years.
It is on track during the current fiscal year to spend at least $1 trillion more than it collects.
The debt has more than doubled since 2001, because of wars in Iraq and Afghanistan, tax cuts and the recession, which has caused tax revenues to plunge and safety-net spending to rise.
(Reporting by Ross Colvin, additional reporting by Andy Sullivan, editing by Vicki Allen) Keywords: OBAMA DEBT/BILL (ross.colvin@thomsonreuters.com; +1-202-898-8392; Reuters Messaging: ross.colvin.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'The administration strongly supports passage of an increase in the public debt limit,' the White House said in a statement.
A tough vote looms in Congress on raising the legal limit for the government's borrowing. Without fresh legislation, the Treasury Department will not have the authority to borrow beyond the $12.4 trillion that Congress authorized last December.
'Such an increase is critically important to make sure that financing of federal government operations can continue without interruption and that the creditworthiness of the United States is not called into question,' the White House said.
Democrats are expected to raise the limit to over $13 trillion to avoid having to revisit the politically difficult issue before mid-term congressional elections due in November.
The vote is likely to draw unwelcome attention to the record $1.4 trillion deficit posted by the Obama administration in the fiscal year 2009 as it tried to stimulate economic growth after the country's worst recession in 70 years.
It is on track during the current fiscal year to spend at least $1 trillion more than it collects.
The debt has more than doubled since 2001, because of wars in Iraq and Afghanistan, tax cuts and the recession, which has caused tax revenues to plunge and safety-net spending to rise.
(Reporting by Ross Colvin, additional reporting by Andy Sullivan, editing by Vicki Allen) Keywords: OBAMA DEBT/BILL (ross.colvin@thomsonreuters.com; +1-202-898-8392; Reuters Messaging: ross.colvin.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.