Obama delays debt limit increase request

US President Barack Obama will delay asking Congress for $US1.2 trillion ($A1.19 trillion) to raise the US government's debt ceiling to allow holidaying politicians time to weigh the request, officials say.

But a senior White House official stressed that the decision was purely a procedural manoeuvre that should not spook markets and added that the Treasury would take measures to ensure the US government did not default on its debt.

The Treasury said earlier this week that the government was due to hit its debt limit of $15.2 trillion in the first week of January.

Since the government would shortly be within $100 billion of that level, officials said that Obama would request an increase.

Once the president requests a debt limit increase, Congress has 15 days to oppose it.

But since politicians are currently on their Christmas and New Year recess, leaders of both chambers had asked for a delay of the request, White House deputy spokesman Josh Earnest said on Friday in Hawaii, where Obama is also on vacation.

"We have been asked by the bicameral leadership of Congress to delay certification in order to give both houses time to consider when votes may occur given the current congressional schedule," Earnest said.

"The administration is in discussions with leaders in both houses to determine the best timing for submission of the certification and any subsequent votes in the two houses."

Congress agreed on July 31 to immediately increase the national debt by $US400 billion, and then raise it in subsequent stages when necessary.

An increase can only be blocked if both the House of Representatives and the Senate pass measures opposing it.

Even if Congress were to disapprove a debt limit increase, Obama has the authority to veto any motion of disapproval.

Officials did not expect any repeat of this year's showdown between Republicans and the White House on the debt ceiling increase, which raised the prospect of the US government defaulting on its obligations for the first time.

Source: http://finance.ninemsn.com.au/newsbusiness/aap/8396837/obama-delays-debt-limit-increase-request

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