Debt limit

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. A handful of countries have debt limitation laws in place. Among the more famous cases is the United States debt ceiling but there are several other countries that have debt limits.[1][2]

Poland is the only nation with a constitutional limit on public debt, set at 60%. By law, a budget cannot pass with a breach in place.[3]

References

  1. ↑ http://www.treasury.gov/initiatives/pages/debtlimit.aspx
  2. ↑ http://www.investmentfrontier.com/2013/10/08/7-countries-with-debt-ceilings-or-limits/#comment-5165
  3. ↑ http://www.sejm.gov.pl/prawo/konst/angielski/kon1.htm
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