Senate Democratic Leader Harry Reid says he will call for a vote Friday on his plan to cut government spending by $2.4 trillion while raising the legal limit on borrowing enough to fund the government through the end of 2012.

President Obama is scheduled to make remarks on the issue within the hour. U.S. stock markets dropped more than 1 percent in early Friday trading, in part because of bad economic figures combined with uncertainty about the debt and deficit.

At the same time, Republicans in the House of Representatives are revising their plan to cut spending and to raise the $14.3 trillion borrowing limit, just four days before the government runs out of money to pay all of its bills.

Republican leaders delayed a planned vote Thursday night on a plan by House Speaker John Boehner that would raise the borrowing limit in exchange for more than $900 billion in spending cuts over the next 10 years. Boehner did not have enough Republican votes to pass the measure, and Democratic leaders said they were unanimously opposed to it.

Some Republicans, including those aligned with the party’s conservative Tea Party faction, opposed Boehner’s plan because they said it did not cut enough spending.

House and Senate Democrats are also strongly opposed to Boehner’s plan, because it calls for a second vote later this year to further raise the debt ceiling in exchange for even bigger spending cuts. President Barack Obama had threatened to veto the measure if it passed Congress.

Without a deal on some kind of plan to raise the limit on borrowing by the deadline, rating agencies would likely to cut the U.S. credit rating, bringing higher interest rates and hurting economic growth.