Countries by Government Interest Payments Burden — 2025
When interest eats the budget
This ranking tracks how much of a government’s revenue is absorbed by interest on public debt. A higher share usually means less room for core spending (health, education, infrastructure) and a tighter margin when shocks hit.
- Budget squeeze: a higher interest-to-revenue ratio leaves less flexibility for services and investment.
- Policy risk: rising interest costs can push tax hikes, spending cuts, or more borrowing—often at worse terms.
- Transmission channel: higher rates bite faster when debt is short-maturity, floating-rate, or frequently refinanced.
Loading the latest official snapshot…
| Rank | Country | Interest / Revenue (%) |
|---|
The core metric is Interest payments (% of revenue) from the World Bank’s World Development Indicators (series GC.XPN.INTP.RV.ZS), sourced from the IMF’s Government Finance Statistics. The snapshot uses the latest available year for each country (often 2022–2024) as a practical proxy for near-current comparison. Aggregated regional/income groups are excluded so the list reflects countries only.
Cross-country comparability is not perfect. Coverage may differ (central vs general government and reporting scope), and the ratio can jump even without a large change in debt if revenue weakens, inflation/disinflation shifts nominal growth, exchange-rate depreciation raises the local-currency cost of foreign-currency interest, or refinancing happens at higher coupons.
- Debt structure can matter as much as debt size: shorter maturities and floating-rate instruments transmit higher rates faster.
- Revenue strength is the shock absorber: broader tax bases can carry similar debt with lower interest-to-revenue stress.
- FX and inflation channels are real: foreign-currency debt and disinflation can lift the ratio even when headline deficits improve.
For households and businesses, high interest burdens often show up as tighter fiscal policy: less room for subsidies, delayed public investment, and higher sovereign risk premiums that can spill into domestic lending rates. For investors and migrants, the indicator is a fast screen for fiscal stress and refinancing risk—best interpreted together with debt-to-GDP and the maturity/currency structure of public liabilities.
What does “interest payments (% of revenue)” actually measure?
It measures the share of government revenue that goes to interest on public debt. A higher share implies less budget room for other priorities.
Why can the ratio rise even if debt doesn’t increase much?
Because the ratio depends on both the interest bill and revenue. It can rise when rates reset higher, refinancing accelerates, revenue weakens, or FX depreciation increases local-currency interest on foreign-currency debt.
Does a high ratio automatically mean default risk?
No. It is a stress signal. Outcomes depend on growth, revenue capacity, market access, maturity profile, and the credibility of fiscal plans.
Why do some high-debt countries not rank at the very top?
Long maturities, fixed-rate debt, captive domestic investors, or strong revenue collection can keep interest-to-revenue manageable even with large debt stocks.
How should I use this ranking with debt-to-GDP?
Debt-to-GDP is the stock; interest-to-revenue is the budget pressure. Countries with high values on both are typically more sensitive to rate shocks and refinancing stress.
What is the difference between interest-to-revenue and interest-to-GDP?
Interest-to-revenue is budget-centric. Interest-to-GDP is macro-centric. In this article, interest-to-GDP is additionally shown (where possible) as a derived estimate using compatible fiscal shares.
Why are years not identical for every country?
The snapshot uses the latest available observation for each country to keep comparisons as current as possible. Many series are reported with different lags across countries.
Full ranking table + debt linkage
The table ranks countries only (aggregated regions/income groups are excluded). Use the controls to switch the ranking metric between Interest / Revenue and Interest / GDP (derived). The context column can show either Debt / GDP or Cash surplus/deficit (% of GDP) (a fiscal-balance proxy where reported).
| Rank | Country | Interest / Revenue (%) | Debt / GDP (%) |
|---|
Interpretation: what a “high burden” really means
A high interest-to-revenue ratio is less about a single bad year and more about how fragile the budget becomes when financing conditions shift. In practice, the indicator compresses four realities into one number: the stock of debt, the price of debt (rates), how often it must be refinanced (maturity), and the government’s ability to raise revenue without destabilizing growth and social outcomes.
Why 2025 is a sensitive window
After a period of rapid tightening, the core question is how quickly legacy lower-coupon debt rolls into new financing terms. Countries with short maturities, floating-rate instruments, or frequent auctions tend to see the budget impact earlier. Countries with longer maturities can delay the hit, but may still face pressure when large clusters of maturities converge.
- When interest absorbs a large share of revenue, policy becomes more reactive and pro-cyclical.
- Even modest shocks can force tax hikes or spending cuts that weaken growth and make debt dynamics worse.
Debt structure is the hidden lever
- Fixed vs floating: floating-rate debt passes rate hikes into the budget faster; fixed-rate debt delays the effect until refinancing.
- Local vs foreign currency: foreign-currency debt can inflate local-currency interest costs when the exchange rate weakens.
- Maturity profile: a refinancing wall can spike yields and widen spreads even without new deficits.
- Inflation and disinflation: falling inflation can slow nominal revenue growth while interest bills remain sticky, lifting the ratio.
Policy takeaways
- Extend maturities where feasible: lower rollover frequency reduces exposure to sudden rate shocks.
- Strengthen revenue quality: broader bases and better compliance reduce denominator risk during downturns.
- Manage FX exposure: align FX liabilities with reserves, hedging, and credible funding plans.
- Protect priority spending: medium-term frameworks and transparent rules help keep core services funded when interest rises.
- Break the debt–interest loop: credible, consistent plans can reduce risk premia that otherwise amplify interest costs.
How to use this ranking responsibly
This is a stress screen, not a full sovereign-risk model. A country can rank high and still stabilize if growth is strong, revenues improve, and maturities extend. Another can rank lower today but face sudden risk if large maturities cluster or FX funding tightens. The most useful read comes from combining the ranking with debt-to-GDP, the maturity/currency profile of public liabilities, and external financing needs.
Sources
-
World Bank WDI — Interest payments (% of revenue) (GC.XPN.INTP.RV.ZS)
Primary series used for the ranking; sourced from IMF Government Finance Statistics.
-
WDI Metadata — definition and source notes for GC.XPN.INTP.RV.ZS
Definition of interest payments and revenue coverage notes.
-
World Bank WDI — Central government debt, total (% of GDP) (GC.DOD.TOTL.GD.ZS)
Used for the debt context and the scatter relationship with interest burden.
-
World Bank WDI — Cash surplus/deficit (% of GDP) (GC.BAL.CASH.GD.ZS)
Used as a fiscal-balance proxy where reported (optional context in the table).
-
IMF — Fiscal Monitor
Framework for interpreting interest burdens, debt dynamics, and medium-term fiscal adjustment.
-
OECD — Public finance
Complementary context for advanced economies: debt composition, interest costs, and fiscal structure.
Download dataset & charts (ZIP)
Government Interest Payments Burden — 2025 snapshot · table + charts files in one archive.
What’s inside the archive
- top-countries-table.html — publication-ready table (no horizontal scroll, 4 columns)
- top-countries.csv — full country list extracted from the ranking excerpt
- top20.csv — Top-20 used for the bar chart
- bar-top20-interest-revenue.png — bar chart image (Top-20)
- scatter-interest-revenue-vs-interest-gdp.png — scatter chart image
