US Treasury estimates federal borrowing will total $552 billion this year, lowest in 8 years

Politics Associated Press

The Treasury Department estimates that it will end up borrowing $552 billion for the current budget year, the lowest total in eight years.

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The Treasury's borrowing estimate covers the budget year that began last October and will end on Sept. 31. The total would represent a drop of 17.6 percent from last year's $670 billion total. It will represent the smallest annual amount since the government borrowed $150 billion in 2007.

Borrowing began to surge after 2007 to meet a string of record deficits. Between 2009 and 2012, the deficit — the gap between revenues and spending — topped $1 trillion as the government struggled to cope with a financial crisis and the worst recession since the 1930s.

The government's current total debt stands at $18.1 trillion.