Definition

1. Noun:
   • The maximum borrowing power of a governmental entity: The "debt ceiling" is the statutory limit on the total amount of national debt that a government is authorized to incur. It represents the maximum amount of money the government is allowed to borrow to finance its obligations.

Usage Examples

• Noun:
  • Congress must vote to raise the debt ceiling to avoid a government default.
  • The debate over the debt ceiling often leads to political gridlock.
  • If the debt ceiling is not increased, the Treasury cannot issue new bonds.

Advanced Usage

• "To hit the debt ceiling": To reach the statutory borrowing limit.
  • The country is expected to hit the debt ceiling by the end of the month.
• "Debt ceiling crisis": A period of financial and political uncertainty caused by the government approaching or reaching its borrowing limit.
  • The 2011 debt ceiling crisis led to a downgrade of the U.S. credit rating.

Variants and Related Words

• Debt limit: A synonymous term for "debt ceiling."
  • The terms "debt limit" and "debt ceiling" are often used interchangeably.
• Statutory debt limit: A more formal term emphasizing the legal nature of the limit.
  • The statutory debt limit is set by legislation.

Synonyms

• Borrowing limit: A general term for a cap on how much can be borrowed.
• Debt cap: Another informal term for the maximum allowable debt.

Related Phrases

• "To suspend the debt ceiling": To temporarily remove the statutory borrowing limit.
  • The bill proposed to suspend the debt ceiling until after the election.
• "Debt ceiling standoff": A prolonged political conflict over raising the borrowing limit.
  • The debt ceiling standoff threatened to shut down government services.

Related Concepts

• Government debt: The total amount of money borrowed by a government.
• Default: The failure to meet a financial obligation, such as paying interest on debt, which can occur if the debt ceiling is not raised.
• Fiscal policy: Government policy concerning taxation and spending, which is directly connected to debates over the debt ceiling.

Noun

1. the maximum borrowing power of a governmental entity