by Calculated Risk on 11/21/2006 12:51:00 PM

Click on graph for larger image.

The Treasury Department reports that interest on the National Debt was $405.9 Billion for fiscal 2006. The fiscal 2006 interest payment is an all time nominal record.

However, as a percent of GDP, interest on the National Debt is rising, but still low compared to the previous couple of decades. This is because the effective interest rate is very low compared to previous periods, even though the National Debt is increasing rapidly.

For October 2006 (first month of fiscal 2007), interest payments were $22.3 Billion compared to $18.8 Billion for October 2005.

As a rough estimate, interest payments will probably be in the $440 Billion to $460 Billion range for fiscal 2007. I'll work up a better estimate soon. Last November, I projected interest payments of $411 Billion for fiscal 2006.