The U.S. government's interest burden is the largest in 28 years... 3.06% of GDP.

The U.S. federal government's interest burden on government bonds has reached its highest level in 28 years, Bloomberg reported.

According to the U.S. Treasury Department's monthly report cited by Bloomberg, the U.S. federal government's net interest expenses from October last year to September amounted to $882 billion and about 1,200 trillion won.

The share of net interest expense compared to GDP stood at 3.06%, the highest in 28 years since 1996.

Net interest expense accounts for 18% of federal fiscal revenue in the period, surpassing Pentagon spending, Bloomberg said.

While the rising fiscal deficit in recent years has led to an increase in government bond issuance, the Federal Reserve's rise in interest rates in response to inflation has been a major factor in increasing the federal interest burden.

In addition to spending astronomical amounts of money to respond to the pandemic, the U.S. government has been raising spending by increasing social security and health insurance support for low-income families.

The large-scale tax cut policy in 2017 during the Donald Trump administration has also been a major factor in worsening the fiscal deficit.

In the run-up to the presidential election early next month, neither Democratic presidential nominee Vice President Kamala Harris nor Republican former President Trump seem to be dealing with the budget deficit as their main agenda.

However, the increased interest burden is expected to increase the risk of limiting the next administration's policy options as fiscal concerns mount.

"As interest expense burdens increase, the issue tends to become more politically important because politicians are more likely to recognize that financing for urgent spending is not free," said Wendy Edelberg, director of the Brookings Institution's Hamilton Project.