$1.3 trillion on the table in US debt talks

'I think we're in a position where we'll be able to get well above US$1 trillion pretty quick in terms of what would be a down payment on the process,' Mr Biden said after a three-hour meeting on Capitol Hill with top lawmakers. -- PHOTO: AP

WASHINGTON - US LAWMAKERS are weighing US$1 trillion (S$1.3 trillion) in deficit-cutting measures as part of a possible deal that would allow an increase in the country's borrowing authority, Vice President Joe Biden said on Tuesday.

Mr Biden's comments were a sign that despite wide skepticism, Democrats and Republicans may be able to hash out a deal that would tame the national debt and give Congress enough political cover to lift the US$14.3 trillion debt limit before an Aug 2 deadline.

'I think we're in a position where we'll be able to get well above US$1 trillion pretty quick in terms of what would be a down payment on the process,' Mr Biden said after a three-hour meeting on Capitol Hill with top lawmakers.

Republicans have said that any deal to raise the debt limit would have to include spending cuts of equal size.

A US$1 trillion 'down payment' could allow Congress to back a debt-limit increase which would cover the country's borrowing needs roughly through February 2012. That would require Congress to revisit the politically painful issue before the November 2012 elections.

Democrats and Republicans agree that the United States needs to reduce budget deficits by US$4 trillion over the coming decade to ensure its debt remains at a manageable level. -- REUTERS