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debt limit

American  

noun

  1. (in public finance) the legal maximum debt permitted a municipal, state, or national government.


Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Congress changed the law in 2018, after prodding by the industry, and doubled the debt limit to two times equity.

From The Wall Street Journal • May 1, 2026

In other areas, like the question of the debt limit, MacDonough and other parliamentarians have acted more as literalists, according to Kogan.

From Salon • Jan. 9, 2025

In the end, they actually defied him, passing a bill that was silent about the debt limit.

From Los Angeles Times • Dec. 29, 2024

Also known as the debt limit, this is a law that restricts the total amount of money the government can borrow to pay its bills.

From BBC • Dec. 20, 2024

The taxation limit on property is 1% on the cash value, thus compelling special dependence upon all sorts of indirect taxes; the debt limit is 5% on the assessed valuation.

From Encyclopaedia Britannica, 11th Edition, Volume 6, Slice 1 "Châtelet" to "Chicago" by Various

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