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A quick google search indicated debt interest is about 5% of the national budget. This does seem low in comparison to the US, where ~17% of the national budget
by s1artibartfast 2y ago
A quick google search indicated debt interest is about 5% of the national budget.
This does seem low in comparison to the US, where ~17% of the national budget is spent servicing debt interest. For context, this is approximate 1.5X what we spend on national defense. [1]
https://www.investopedia.com/why-interest-payments-are-blowing-up-the-federal-budget-8712197 https://www.investopedia.com/why-interest-payments-are-blowi...
- rsynnott 2y agoHuh. Ireland’s is about 2.5% (3.1bn on 119bn budget next year). Slightly puzzled at what’s going on with the US debt; that does seem very expensive. Though it’s not _entirely_ comparing like for like, in that states have their own separate budgets in the US (local authorities in Ireland do too, but their own revenue raising capabilities are very limited and most of the money comes from central government). Looks like the US’s cost of servicing works out to about 3.4%, which definitely seems rather high (though, probably still not high enough that you’d necessarily want to aggressively pay it down; 3.4% isn’t a _great_ return). Actually, I’d wonder how much of this is related to the debt ceiling stuff; I would assume that makes refinancing when debt is cheap more difficult.
- s1artibartfast 2y agofor Ireland, are you talking about % GDP or %governmental budget. I don't know how or if the debt ceiling has any impact on refinancing.
- rsynnott 2y ago% budget. Debt servicing is about 0.5% GDP, but Ireland’s GDP is so massively distorted that it’s not really worth paying attention to.
- s1artibartfast 2y agoOK, I think we were using different units when comparing. My concern is that the US GDP is also fluffed up, and the situation is more dire.