Wednesday, it was announced by the Treasury Department that the US might end up meeting its $16.4-trillion borrowing limit by this year end. As per a recent report, it is therefore being doubted that the nation's debt ceiling may once again be seen.

It is being said by the Treasury that the borrowing limit may be hit at the same time, when Congress might be struggling with the hikes in automatic tax. Also, it might be fighting with large government spending cuts, which are to come on Jan. 1.

It is being estimated that the next year might face recession. The Congressional Budget Office along with many economists assume that if tax increases and spending reductions are seen as a union or the fiscal cliff occurs, recession is possible.

Besides, hitting or going too close to the debt limit may mean a demotion of the U. S. credit rating for a second time. Though, the first credit revision was there to be seen as a result of a bitter debate over the issue.

However, the Treasury says that it would be taking extraordinary measures so that the nation's finances could be managed and be given to Congress and the White House. It says that they would get more time to increase a debt-limit.