Washington, Oct 16 (IANS): US deficit in fiscal year 2015 dropped to an eight-year low as individual and corporate taxes revenues boosted the receipts to record, authorities said.

The US Treasury on Thursday said the deficit in fiscal year 2015, which started from October 1, 2014 and ended on September 30, 2015, fell to $439 billion, $44 billion less than that of fiscal year 2014, the lowest since 2007, reported Xinhua.

The deficit to GDP ratio dropped to 2.5 percent, also the lowest since 2007.

The Treasury attributed the fallen deficit to the rising receipts, stimulated by the strong economy. In fiscal year 2015, the US government receipts totaled $3,249 billion, an increase of 8 percent from a year ago.

Both individual and corporate income tax collections increased in the year against the background of better economic performance, said the Treasury.

The US economy grew at an annual rate of 2.25 percent in the first half of 2015. Though modest, the growth was still higher than that in most other developed economies, and helped bring the unemployment rate down to a seven-year low of 5.1 percent in September.

Outlays for fiscal year 2015 were $3,688 billion, an increase of 5 percent year-on-year.

The US Congress and the White House have been discussing a two-year budget deal and need to reach an agreement before December 11, when the current short-term funding will expire. Congress also needs to take action to raise the country's debt limit.