The Obama administration will ask Congress to raise the nation's borrowing limit by $1.2 trillion by Friday.

It is the third and final increase of the debt ceiling deal that was negotiated during the summer as a part of the Budget Control Act of 2011.

The latest increase will take the debt ceiling up to $16.4 trillion. The limit has already been approved by Congress twice to the tune of $900 billion.

Treasury Department said that should keep the government operating for another year.

Even if the debt limit was reached before November of next year, the Treasury has the power to extend the government's debt limit.