Books & Magazines

Prelims Wallah (Q&A Bank)

Udaan

Udaan 500+

Budget & Economic Survey

Monthly Current Wallah

Weekly Current Wallah

Editorial Summary

Editorial Q&A Compilation

NCERT Wallah

Prahaar (Mains Wallah)

Marks Booster

Mains Wallah (Q&A Bank)

UPSC PYQs

UPSC Notes

CA & Editorials

Daily Current Affairs

Subject Wise Current Affairs

Editorial Analysis

Other Resources

Current Affairs

Debt Ceiling Crisis

Debt Ceiling Crisis

PWOnlyIAS

May 30, 2023

Context: 

In little more than a week, the US government could default on its borrowings — an unprecedented situation that could potentially hit economies worldwide — if Congress doesn’t raise the nation’s debt ceiling.

About US Debt Ceiling:

  • It is the total amount the US government is allowed to borrow to finance its expenditure, such as paying salaries and welfare allowances.
  • Current limit:  $31.4 trillion. 
  • Introduced in: In 1917 when the US entered World War I. 
  • Constitutionally, Congress controls the government’s purse strings. 
  • Purpose: 
    1. To make it easier for the executive to operate without having to turn to Congress every time it wanted to spend 
    2. To allow the government to borrow as required as long as it is kept under the debt limit approved by Congress.

Possible impacts if the govt defaults:

  • The government would no longer have the money to function, and would have to decide who gets salaries, and how much.
  • Harm to the global leadership position of the USA and questions about its ability to defend national security interests.
  • US’s credit rating would be downgraded, making future borrowing more expensive.
  • Probable weakening of the dollar and the collapse of stock markets.

News Source: Indian Express

Print Friendly, PDF & Email

To get PDF version, Please click on "Print PDF" button.

Print Friendly, PDF & Email

Recent Editorial

India-Australia Defence Ties Beyond American Shado...

A Strategy Fuelled by Vision, Powered by Energy

​Act North: On the Needs of Ladakh

Strengthening the U.S.-India Subsea Cable Agenda

On India and COVID-19

The DM Position is Outdated. It’s a Personality ...

Popular current affairs

Scheme to Promote Manufacturing of Electric Passen...

Ladakh’s New Rules on Quota, Domicile and Hill C...

First Fusion-Fission Hybrid Reactor: China Unveils...

Legislatures Enacting Laws Not Contempt of Court: ...

ICRISAT Centre of Excellence for South-South Coope...

World Air Transport Summit 2025 Key Highlights

Our Courses

Our Courses

Need help preparing for UPSC or State PSCs?

Connect with our experts to get free counselling & start preparing

Aiming for UPSC?

Download Our App

# #

Download Our App

# #

Contact Details

Aiming for UPSC?

Download Our App

# #
      

Follow Us:

Contact Details

Download Our App

# #
Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

<div class="new-fform">






    </div>

    Subscribe our Newsletter
    Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
    *Promise! We won't spam you.
    Yes! I want to Subscribe.