Interest On National Debt To Become Second-Largest Government Expenditure

Interest on the U.S. national debt is on pace to become the “second largest” federal government expenditure, according to an analysis of the latest Congressional Budget Office projections.

The analysis was made by the bipartisan group Committee for a Responsible Federal Budget and released Wednesday.

The group characterizes interest on the national debt – currently climbing to $35 trillion – as the “fastest growing” part of the federal government’s annual budget.

The CRFB report also stated: “As a share of the economy, debt will grow from 97 percent of Gross Domestic Product (GDP) in Fiscal Year (FY) 2023 – twice the 50-year historical average of 48 percent – to a record 106 percent of GDP by 2028.”

New projections from the Congressional Budget Office states: “Net interest payments will exceed both defense and Medicare spending this year, in FY 2024.”

That projection will make interest the second largest government expenditure,” according to the budget watchdog’s analysis.