US inches closer to govt. default

US: The efforts to stop a possible debt default in the United States have not proven successful with time running short till the looming deadline.

The White House has rebutted with the threat of a presidential veto on a Republican plan for federal spending in case Congress approves it, Reuters reported on Monday.

The plan can clear the way for an increase in the debt ceiling before August 2, when the government faces a default on its financial obligations, if the lawmakers pass a constitutional amendment.

House Speaker John Boehner said in a statement, "The cut, cap and balance plan that the House will vote on next week is a solid plan for moving forward.

"Let's get through that vote, and then we'll make decisions about what will come after."

The bill would cut fiscal year 2012 spending by $111 billion, cap future spending at 18 percent of GDP, and propose a balanced budget amendment to the Constitution.

"It's disappointing the White House would reject this common-sense plan to rein in the debt and deficits that are hurting job creation in America.

While American families have to set priorities and balance their books, this White House obviously isn't serious about making the same tough choices," Boehner said, adding, "If we are going to raise the debt limit and avoid default, the White House must be willing to demonstrate more courage than we have seen to date."

The US hit its borrowing limit of $14.3 trillion on May 16, up from $10.6 trillion when Obama took office in 2009.

The Democrats and the Republicans have been holding talks on how to curb the massive debt; however, they have failed to reach an agreement. Tuesday, Press TV