debt limit

debt limit definition - finance
A limit put on the amount of funds that a government is allowed to borrow. Debt limits are created in order to restrain the governmentÂ’s ability to overspend, which would eventually drive up taxes.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.