US won't breach debt limit until October or November

[WASHINGTON] The US probably won't need to raise the debt ceiling until October or November 2015, the Congressional Budget Office said on Tuesday.

The Treasury Department will have enough revenue coming in for the next few months from tax returns and its "well- established toolbox of so-called extraordinary measures" to avoid a potential default on the debt.

Congress voted last year to suspend the debt limit until March 15. Once that date passes, the ceiling will be raised to reflect the current debt of about US$18.1 trillion, according to CBO.

US lawmakers have struggled to raise the debt limit since Republicans won control of Congress in 2010, nearing the brink of default in 2011 and 2013.

Republicans typically want to pair the debt limit increase with budget cuts. President Barack Obama, after agreeing to such cuts in 2011, has since called for debt limit increases with no strings attached.

A debt limit debate in October or November would occur amid 2016 presidential primary campaigns, adding a layer of complication that wasn't present in 2011 or 2013.

BLOOMBERG