Debt Limit (Noun)
Meaning
The maximum borrowing power of a governmental entity.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The debt limit imposed by the constitution prevents the government from borrowing excessively to finance its spending programs.
- Congress voted to increase the national debt limit to avoid a default on the country's financial obligations.
- The proposed budget would exceed the statutory debt limit and require special legislation to pass.
- Concerns have been raised about the nation's rapidly increasing debt, prompting calls to reduce the debt limit.
- If the debt limit is not raised, the government will be unable to meet its financial commitments and face severe economic consequences.