By John Shaw

WASHINGTON (MNI) - House Majority Leader Steny Hoyer said Wednesday that he expects the House to approve a bill Thursday that includes a $1.9 trillion increase in the statutory debt ceiling and the renewal of pay-as-you-go budget enforcement rules.

At a briefing with representatives of the so-called Blue Dog Coalition, Hoyer said that renewing PAYGO is a critical step for confronting the nation's fiscal problems.

PAYGO, Hoyer said, can play a "substantial role" in reducing budget deficits over time. PAYGO requires that new tax cuts or entitlement programs be offset with tax hikes or spending cuts so they are deficit neutral.

PAYGO has been credited by many budget experts in helping shore up the U.S.'s fiscal position in the 1990s.

But he said that fiscal improvement will not come easily or quickly.

"It's going to take some time because we're deeply in debt," Hoyer said.

The Senate passed the debt ceiling/PAYGO package last week, so if the House approves the bill Thursday it will be sent to President Obama for his signature.

The legislation increases the current statutory debt ceiling by $1.9 trillion to $14.294 trillion.

In late December, Congress voted to increase the debt ceiling by $290 billion to $12.394 trillion.

On another matter, Sen. Chuck Grassley, the ranking Republican on the Senate Finance Committee, blasted the Obama administration for failing to apply sufficient pressure on China to reform its currency.

Grassley said the Bush administration failed to declare China a currency manipulator and so far he has seen "more of the same" from the Obama administration.

Grassley said the administration's strategic dialogue with China "hasn't produced results" so far.

** Market News International Washington Bureau: (202) 371-2121 **