# The U.S. Treasury is set to borrow over $2 trillion in fiscal year 2026, a federal deficit exceeding 6% of GDP.

*business · news · 2026-05-08 · The Economic Times*

## Key points

- The U.S. Treasury is now projecting over $2 trillion annual deficits as the new baseline, not emergencies.
- Interest payments on national debt are approaching $1 trillion per year, rivaling major federal expenditures.
- Achieving a 3% GDP deficit target by 2036 requires $10 trillion in deficit reductions over a decade.
- Structural spending obligations, not temporary crises, are now the main drivers of federal deficits.

**Countries:** United States

[Read the full story on The Economic Times](https://economictimes.indiatimes.com/news/international/us/u-s-treasury-to-borrow-2-trillion-in-2026-as-national-debt-nears-39-trillion-is-america-quietly-entering-a-dangerous-fiscal-crisis-beyond-washingtons-control/articleshow/130962911.cms)

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