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Which Countries Pay the Most Interest on Government Debt

US interest hit a record 18.5% of federal revenue in FY2025, yet a home buyer still pays only about 2.2 points more than Washington does (7.40% against 5.19%).

  • No. 1: Pakistan
  • 10 places

01Final list

The leading AIs each built their own list of ten independently. Here is one result that is easy to check: every place has a reason, a source, and the list of AIs that included it.

Order: from most to least AI agreement.

A bright badge means this AI put the entry on its list. A dim badge means it did not.

  1. 1

    Pakistan

    About 39% of revenue goes to interest (an older World Bank figure). Its own 2026–27 budget sets aside Rs 8.054 trillion for interest.

    Included it: Claude, ChatGPT.

    In their lists: Claude: 4 · ChatGPT

    What each AI noted 2
    • Claudeplace 4

      39% of revenue goes to interest, even though the IMF expected lower rates to ease the bill in FY26.

      Source ↗
    • ChatGPT

      Named differently in its own list: open the full list.

    2 AIs put it here
    Source ↗
  2. 2

    United States

    A record 18.5% of federal revenue went to interest in FY2025, and CBO expects about 19% in 2026. Home buyers pay only about 2.2 points over Treasuries.

    Included it: Claude, ChatGPT.

    In their lists: Claude: 7 · ChatGPT

    What each AI noted 2
    • Claudeplace 7

      Interest takes about 19 cents of each federal revenue dollar. Home buyers pay only about 2.2 points above the Treasury yield.

      Source ↗
    • ChatGPT

      Named differently in its own list: open the full list.

    2 AIs put it here
    Source ↗
  3. 3

    Nigeria

    The highest figure here: an IMF assessment puts interest at 53.7% of revenue in 2026. Only one report gives it, so it ranks below the three checked figures.

    Included it: Claude. Did not include: ChatGPT.

    In their lists: Claude: 1

    What each AI noted 1
    • Claudeplace 1

      More than half of every naira of revenue goes to interest: 53.7% in 2026, up from 40.8% in 2024.

      Source ↗
    1 AIs put it here
    Source ↗
  4. More about the top three ↓
  5. 4

    Ghana

    One compilation puts interest at 47% of revenue but gives no year, so treat it as an older, unchecked figure. No 2026 number was found.

    Included it: Claude. Did not include: ChatGPT.

    In their lists: Claude: 2

    What each AI noted 1
    • Claudeplace 2

      At 47% of revenue, Ghana's interest bill is bigger than the whole US share, and the figure is several years old.

      Source ↗
    1 AIs put it here
    Source ↗
  6. 5

    Egypt

    About 42 piastres of every pound of revenue go to interest. That is a 2021–22 World Bank figure from a single compilation; no 2026 value was found.

    Included it: Claude. Did not include: ChatGPT.

    In their lists: Claude: 3

    What each AI noted 1
    • Claudeplace 3

      Roughly 42 piastres of every pound of revenue go to interest, based on older World Bank data.

      Source ↗
    1 AIs put it here
    Source ↗
  7. 6

    India

    About 34% of revenue goes to interest, the highest share among the G20 countries on this list. Two pages give it, but the World Bank figure dates from 2022.

    Included it: Claude. Did not include: ChatGPT.

    In their lists: Claude: 5

    What each AI noted 1
    • Claudeplace 5

      About 34% of revenue goes to interest, the biggest burden in the G20 after Brazil and Argentina-type cases, but the figure dates from 2022.

      Source ↗
    1 AIs put it here
    Source ↗
  8. 7

    Brazil

    30.1% of revenue went to interest in 2024 (one source), and the Selic policy rate is still 13.75% after five quarter-point cuts.

    Included it: Claude. Did not include: ChatGPT.

    In their lists: Claude: 6

    What each AI noted 1
    • Claudeplace 6

      With the Selic at 13.75%, Brazil pays about 30% of revenue in interest, and the gap between interest rate and growth is still positive.

      Source ↗
    1 AIs put it here
    Source ↗
  9. 8

    Japan

    Measured differently: interest is 10.4% of spending, not revenue. The 25.6% figure is total debt service including redemptions. Its 10-year yield jumped 130 bp in a year.

    Included it: Claude. Did not include: ChatGPT.

    In their lists: Claude: 8

    What each AI noted 1
    • Claudeplace 8

      Interest is only about 10% of spending, but the 10-year yield rose 130 bp in a year, the biggest rise on the list.

      Source ↗
    1 AIs put it here
    Source ↗
  10. 9

    Italy

    Only a spending share is known: about 8%. The roughly 9%-of-revenue figure is a 2028 projection. Its 10-year yield of 3.99% is below the UK's and the US's.

    Included it: Claude. Did not include: ChatGPT.

    In their lists: Claude: 9

    What each AI noted 1
    • Claudeplace 9

      Italy pays about 8% of spending in interest, and its 10-year yield, 3.99% in August, is lower than the UK's, US's or France's.

      Source ↗
    1 AIs put it here
    Source ↗
  11. 10

    United Kingdom

    Interest is 7% of planned 2026/27 spending (not revenue), or 3.2% of GDP. Its 5.34% 10-year gilt yield is the highest among the big rich-country issuers.

    Included it: Claude. Did not include: ChatGPT.

    In their lists: Claude: 10

    What each AI noted 1
    • Claudeplace 10

      The UK's 5.34% 10-year yield is the highest of the big rich-country issuers, and 7% of planned spending goes to interest.

      Source ↗
    1 AIs put it here
    Source ↗

02More about the top three

The ranking is above. Here is more about the three places at the top: what they are, why they are here, and what is worth knowing.

The three figures are not quite comparable: Pakistan's 39% is an older World Bank number, the US 18.5% is FY2025, and Nigeria's 53.7% is a 2026 IMF projection from a single report.

1Pakistan

No. 1 — Pakistan. On the lists of 2 of 2 AIs; median place there: 4. The AIs put Pakistan first because about 39% of its revenue goes to interest, backed by a budget that sets aside Rs 8.054 trillion.

Blue Hour at Pakistan Monument
Muhammad Ashar · CC BY-SA 4.0 · Wikimedia Commons

Did you know

  • A Dawn analysis says Pakistan's debt payments took Rs8.9tr in FY25, over half of total federal revenues. After money is shared with the provinces, it was 82.7pc of net federal revenues. India, by its comparison, spends 25–30pc.

    Source ↗
What it is
A South Asian country where debt payments take a huge share of income.
Its edge
Its own budget confirms very large interest costs, more firmly than Nigeria's single report.
Who should know
Useful for anyone wanting to see how debt payments can squeeze a government's other spending.
  • Interest as share of revenueAbout 39% of revenue
  • Founded1947
  • HeadquartersPakistan

Wikipedia · Wikidata

History

  • In 1971, a crisis in Pakistan led to war with India and the secession of East Pakistan. The territory became the independent state of Bangladesh. — (voice only)

    Source ↗
Keep in mind

  • Pakistan's budget sets aside Rs 8.054 trillion for debt servicing, about 43% of federal spending. That is up about 16% from the revised figure for last year.

    Source ↗ ✓ confirmed by several AIs

  • Sources disagree on the size. One outlet says Rs 7.824 trillion and calls it a small cut. Check which measure each report uses.

    Source ↗

Video: Pakistan’s politics - explained | Start Here · Al Jazeera English

Compare the top three ↓

2United States

No. 2 — United States. On the lists of 2 of 2 AIs; median place there: 7. The AIs ranked the US lower because interest is a record 18.5% of revenue, yet home buyers pay only about 2.2 points over Treasuries.

United States - Location Map (2013) - USA - UNOCHA
UN Office for the Coordination of Humanitarian Affairs (OCHA) · CC BY 3.0 · Wikimedia Commons

Did you know

  • Interest on the US national debt has grown larger than defense spending. In the first six months of FY2024, interest was $440 billion and defense was $412 billion, according to Fox Business. CBO's full-year projection was $870 billion for interest versus $822 billion for defense.

    Source ↗ ✓ confirmed by several AIs
What it is
The world's largest economy, with a fast-growing interest bill.
Its edge
Its share is the lowest of the three, and its home loans cost only slightly more than government debt.
Who should know
Useful for anyone wondering whether rich countries are also being squeezed by interest, and why it matters for mortgages.
  • Interest as share of revenue18.5% of federal revenue
  • Founded1776
  • HeadquartersUnited States

Wikipedia · Wikidata

Why it is here

  • In FY2025, 18.5% of US federal revenue went to interest, a record in the data series that began in 1940. — (voice only)

    Source ↗

  • CBO’s 2026 baseline projected interest costs at 19% of federal revenue in 2026, up from 9% in 2021. — (voice only)

    Source ↗
History

  • In 1933, a wave of bank failures led President Roosevelt to declare a nationwide bank holiday. The crisis ended when banks reopened after the government reviewed them and provided support. — (voice only)

    Source ↗
Keep in mind

  • The 'interest beats defense' claim depends on how you count. Gross interest includes money the government pays itself. A wider definition of defense could reverse the result.

    Source ↗

Video: THE HISTORY OF THE UNITED STATES in 10 minutes · Knowledgia

Compare the top three ↓

3Nigeria

No. 3 — Nigeria. On the lists of 1 of 2 AIs; median place there: 1. Nigeria has the highest figure, 53.7% in 2026, but only one report gives it, so the AIs placed it below the checked figures.

Did you know

  • Nigeria's central bank can lend to the government through "ways and means" advances. The law caps them at 5% of the previous year's revenue. BusinessDay reported in 2021 that they were "well over N10trillion", and that the debt office planned to restructure them into long-term debt.

    Source ↗
What it is
Africa's largest economy, where interest eats over half of revenue.
Its edge
Its projected share is the highest of the three, though backed by only one source.
Who should know
Useful for anyone curious how a government can owe more in interest than it keeps, and how reliable such numbers are.
  • Interest as share of revenue53.7% of revenue (2026)
  • Founded1963
  • HeadquartersNigeria

Wikipedia · Wikidata

History

  • In 1967, Nigeria’s Eastern Region declared independence as Biafra, triggering a civil war. Biafra surrendered in January 1970 and was brought back into Nigeria. — (voice only)

    Source ↗
Keep in mind

  • The IMF projects interest at 53.7% of revenue in 2026, easing slightly to 52.4% in 2027. It rates the risk of debt distress as moderate, because the revenue burden is the real pressure.

    Source ↗

  • Older headlines say Nigeria could spend almost 100% of revenue on debt service by 2026. That came from an earlier IMF projection and has since been replaced by lower figures.

    Source ↗
Where to go further

  • Open the DMO's domestic debt service page. Look first at the totals for the nine months and the fourth quarter of 2025. Interest makes up most of domestic debt service, so compare it with federal revenue.

    Source ↗
Claude put it first. What they saw in it

  • Claude: More than half of every naira of revenue goes to interest: 53.7% in 2026, up from 40.8% in 2024.

Video: Nigeria's civil war explained - BBC News · BBC News

Compare the top three ↓

The top three side by side

PakistanUnited StatesNigeria
In the AIs' lists2 / 22 / 21 / 2
Interest as share of revenueAbout 39% of revenue18.5% of federal revenue53.7% of revenue (2026)
Founded194717761963
HeadquartersPakistanUnited StatesNigeria
Put first by——Claude

Places with the same number of AIs are ordered by their average place in the AIs' own lists.

More ratings

03Worth knowing

What the AIs noticed while building the list.

The US interest burden is a record: about 18.5% of federal revenue in FY2025, above the 1991 peak of about 18.4%. CBO projects about 19% for 2026 and 26% by 2036.

Noticed by:
Included it: Claude. Did not include: ChatGPT.
Source ↗

The IMF puts interest at 2.3% of GDP, or nearly 15% of revenue. One reading treats this as the global figure, the other as the figure for low-income developing countries. Either way, it is not a country ranking.

Noticed by:
Included it: Claude, ChatGPT.
Source ↗

In the past year the 10-year yield rose in nearly every market: Korea +161 bp, Japan +130 bp, the US +110 bp and Australia +109 bp. South Africa fell 92 bp.

Noticed by:
Included it: Claude. Did not include: ChatGPT.
Source ↗

Long-bond yields hit multi-decade highs in August 2026: the US 30-year at 5.31%, the German 10-year at 3.28% (highest since 2011) and the Japanese 10-year at 2.92% (highest since 1996).

Noticed by:
Included it: Claude. Did not include: ChatGPT.
Source ↗

The figures are not like-for-like. Developing countries are quoted as interest in revenue, while Japan, Italy and the UK are quoted as interest in spending, and the US figure covers federal government only. A home-loan premium is also only comparable for the US, because other countries publish different loan products.

Noticed by:
Included it: Claude, ChatGPT.
Source ↗

04Questions people ask

Which countries pay the most interest on government debt?

As a share of revenue, the latest figures found are Nigeria at 53.7% (a single IMF-based report), Pakistan at 39% and India at 34%, against about 19% for the US. Many of the non-US figures are older than 2026.

Source ↗
When was the highest mortgage rate?

The US 30-year fixed rate peaked at 18.63% in October 1981 in Freddie Mac's series. One source quoted 8.89% in 1994, but that does not match Freddie Mac's history.

Source ↗
What were the highest mortgage interest rates?

Freddie Mac's US 30-year average reached 18.63% in October 1981. The October 2026 reading of 7.40% is far below that peak.

Source ↗
What is US interest as a percentage of revenue?

Federal net interest took about 18.5% of federal revenue in FY2025, a record, and CBO projects about 19% for 2026. FY2026 net interest was $1.052 trillion.

Source ↗

05How we counted

In plain words, no formulas.

1The question

Top 10 Governments Where Interest Eats the Most Tax Revenue, Set Against What Home Buyers Pay Above the State

2Why this topic

Government finances and household borrowing costs are published in separate tables; this puts them side by side, country by country.

3Where it applies

Global: G20 and other major government bond issuers

4What we looked at

  • Government net interest payments as a share of government revenue in 2026 (the ranking order)
  • Typical new home-loan rate minus the 10-year government yield, i.e. the extra a household pays over the state
  • Change in the 10-year government yield over the past 12 months
  • IMF Fiscal Monitor — Government interest spending as a share of GDP and revenue. The 2026 country tables could not be read, so only the headline figures are used.
  • World Bank WDI: Interest payments (% of revenue), GC.XPN.INTP.RV.ZS — Interest paid as a share of government revenue. Latest years are mostly 2021–2024, not 2026.
  • Congressional Budget Office, Budget and Economic Outlook 2026 to 2036 — US federal net interest as a share of federal revenue: about 19% in 2026, rising to 26% in 2036.
  • Freddie Mac PMMS — Weekly US average rate on a 30-year fixed mortgage (7.40% in October 2026). Other countries' home-loan rates use different products and are not comparable.
  • thetrading.tools global bond yields — 10-year government yields and their 12-month change in basis points (daily for the major markets, monthly OECD data for the rest).

5Who ranked

The leading AIs, each building its own list of ten independently and naming a source for every place: Claude, ChatGPT.

6How the places were set

The same entry written differently by different AIs was counted as one. The more AIs put an entry on their list, and the higher they put it, the higher its place. "AI agreement" shows how many of the AIs had it on their own list. Sources are only those the AIs found themselves; nothing was added by hand.

06Each AI's own list

🇺🇸 Claude10 places · 3 notes

The same question, answered by Claude alone. The final list above combines all the AIs.

  1. 1
    Nigeria

    More than half of every naira of revenue goes to interest: 53.7% in 2026, up from 40.8% in 2024.

    Source ↗
  2. 2
    Ghana

    At 47% of revenue, Ghana's interest bill is bigger than the whole US share, and the figure is several years old.

    Source ↗
  3. 3
    Egypt

    Roughly 42 piastres of every pound of revenue go to interest, based on older World Bank data.

    Source ↗
  4. 4
    Pakistan

    39% of revenue goes to interest, even though the IMF expected lower rates to ease the bill in FY26.

    Source ↗
  5. 5
    India

    About 34% of revenue goes to interest, the biggest burden in the G20 after Brazil and Argentina-type cases, but the figure dates from 2022.

    Source ↗
  6. 6
    Brazil

    With the Selic at 13.75%, Brazil pays about 30% of revenue in interest, and the gap between interest rate and growth is still positive.

    Source ↗
  7. 7
    United States

    Interest takes about 19 cents of each federal revenue dollar. Home buyers pay only about 2.2 points above the Treasury yield.

    Source ↗
  8. 8
    Japan

    Interest is only about 10% of spending, but the 10-year yield rose 130 bp in a year, the biggest rise on the list.

    Source ↗
  9. 9
    Italy

    Italy pays about 8% of spending in interest, and its 10-year yield, 3.99% in August, is lower than the UK's, US's or France's.

    Source ↗
  10. 10
    United Kingdom

    The UK's 5.34% 10-year yield is the highest of the big rich-country issuers, and 7% of planned spending goes to interest.

    Source ↗

What Claude noticed

The US interest burden is a record. About 18.5% of federal revenue went to interest in FY2025, above the 1991 peak of about 18.4%, and CBO projects about 19% for 2026.

Source ↗

Long-bond yields hit multi-decade highs in August 2026: the US 30-year at 5.31% (prior high 5.35% in 2007), the German 10-year at 3.28% (highest since 2011), and the Japanese 10-year at 2.92% (highest since 1996).

Source ↗

The 10-year yield rose in nearly every market in the past year. Japan rose +130 bp, the US +110 bp, Australia +109 bp and Korea +161 bp, while South Africa fell 92 bp.

Source ↗