US President Joe Biden signed on Saturday, two days before the term expired, on the bill to increase the debt limit to protect against default in liabilities. After this, the danger of the federal government being an unprecedented defaulter was averted. The White House announced the signing in an emailed statement. In this, Biden thanked the Congress leaders for their cooperation.

The US Department of Revenue had warned that if this bill is not passed in time, the country will face a cash crunch to pay its bills. This will pose serious challenges to the US and global economies.

The bill was deadlocked by the Republican Party on the issue of cutting spending. This created a crisis situation in front of the Democratic Party. The bill was passed by the US Senate by a vote of 63 against 36.

Joe Biden said we are cutting spending and reducing the deficit at the same time. We're protecting critical priorities, from Social Security to Medicare to Medicaid to veterans, to our transformative investments in infrastructure and clean energy.

Highlighting the "compromise and agreement" in the deal, the US President said that no one got everything they wanted, but the American people got what they needed. We have avoided an economic crisis and an economic collapse.

Senate Majority Leader Chuck Schumer said the bill's passage means America can heave a sigh of relief. Earlier, Biden said at the Oval House on Friday evening that it was important to pass this budget agreement. Nothing is more devastating than a country's debt default.