The US federal government could soon spend more on interest for its debt then on the military with interest payments to make up 13% of the federal budget a decade from now, The New York Times reported.

The US government could spend more on debt then it does on the military with interest payments set to make up 13% of the federal budget a decade from now, The New York Times reported.

The increase in borrowing costs has been brought on after a need to finance a rapidly growing budget deficit, made worse by tax cuts rising interest rates.

The cost of interest is on track to be $390 billion next year which is nearly 50% more than in 2017, and it is already the fastest growing government expense, the Congressionalthe Urban-Brookings Tax Policy Center in Washington told The New York Times. "Everything else is getting squeezed."

The cost of interest is on track to be $390 billion next year which is nearly 50% more than in 2017, and it is already the fastest growing government expense, the Congressional Budget Office said.



Rising interest rates would have made the nation’s debt more expensive even without extra debts. But the tax cuts which were passed in late 2017 have increased the pressure on the federal budget and widened the deficit.

Next year, the deficit is expected to reach nearly $1 trillion, the first time it has been that large since 2012, when the US was still recovering from the financial crisis and rates were near zero.

In February, a bill was approved to