Tuesday, February 08, 2011

Fastest Growing portion of Federal Spending? Interest on the debt

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Every month, CBO prepares a two-page balance sheet that summarizes what the government is spending and taking in. The latest version, released Monday, reports that Uncle Sam has paid $80 billion in net interest on the federal debt through the first four months of the 2011 fiscal year.

That represents a 9.1% increase over the same period last year.

The four-month period offers just a snapshot of the year. And the CBO report distills the gigantic federal budget, with its thousands of different programs, into nine big categories.

But make no mistake: The interest on the debt is a growing chunk of the budget. Last fiscal year, interest costs rose 13.2% -- more than any other category.