Debt limit
A debt limit or debt ceiling is a legislative mechanism restricting the total amount that a country can borrow or how much debt it can be permitted to take on. Several countries have debt limitation restrictions.
Description
A debt limit is a legislative mechanism restricting the total amount that a country can borrow or how much debt it can be permitted to take on. Usually this is measured as percentage of GDP.
Use
Several countries have debt limitation laws in place, including the United States debt ceiling.[1][2] Poland is the only nation with a constitutional limit on public debt, set at 60% of GDP; by law, a budget cannot pass with a breach in place.[3]
References
- ^ "Debt Limit". United States Department of the Treasury. Retrieved 2019-06-24.
- ^ "7 Countries with Debt Ceilings or Limits". 2013-10-08.
- ^ "The Constitution of the Republic of Poland".
 | This finance-related article is a stub. You can help Wikipedia by expanding it. |
 | This government-related article is a stub. You can help Wikipedia by expanding it. |