US Budget Deficit Reduced to Lowest Level in Eight Years

On Thursday, October 15, the US Department of the Treasury announced that the budget deficit for the fiscal year 2015 reached $439 billion, marking the lowest budget deficit for the United States in the past eight years. According to Agence France-Presse, this achievement is the result of efforts by President Barack Obama to reduce the deficit following the economic crisis in 2008. The report states that the US budget deficit in 2009 had reached approximately $1.4 trillion. Agence France-Presse adds that a combination of reduced government revenues and increased government expenditures due to financial aid packages for struggling institutions contributed to the rise in the US budget deficit. The budget deficit in 2015 accounted for about 2.5% of GDP, the lowest level since 2007. Additionally, the 2015 deficit figure is lower than the average annual deficit over the past 40 years in the US. In 2014, the US government deficit was around $483 billion. Jacob Lew, the US Treasury Secretary, stated that President Obama's approach to placing the economy on a sustainable path continues, while this strategy has also created a suitable environment for economic growth and widespread prosperity. The Treasury Secretary added that under Mr. Obama's leadership, the deficit has significantly decreased compared to 2009, representing the fastest reduction in the deficit since World War II. According to Agence France-Presse, it is expected that the US budget deficit will slightly increase to $455 billion in 2016. Reuters reports that Republican and Democratic leaders in the US Congress continue negotiations to reach an agreement on the budget for the next two years. They must reach an agreement before December 11, as the temporary budget for government expenditures will expire on that date. In this context, the US Senate approved a temporary budget to prevent the federal government from shutting down.