WASHINGTON: The federal government ran a deficit of $435 billion in the just-completed budget year, the smallest deficit since 2007 and well below the record shortfalls of President Barack Obama’s first term, congressional budget analysts said on Wednesday.

The Congressional Budget Office report says it’s the sixth consecutive drop for the deficit, when measured against the size of the economy, since the $1.4 trillion deficit of Obama’s first term. The improved deficit figures come as Washington is grappling with the need to increase the government’s borrowing cap in early November.

The White House and lawmakers are seeking a separate agreement on a budget to keep the government open past a December 11 deadline.