Kazakhstan spends 11.1% of its total government expenditure on net interest payments on public debt, equivalent to 3.8% of gross domestic product (GDP). By this measure, the country’s burden exceeds the Organisation for Economic Co-operation and Development (OECD) average of 4.9% and even the U.S.’ 10.7% — despite Kazakhstan’s relatively low public debt, estimated at about 22% of GDP.
The figures were highlighted by economist Andrey Chebotarev, who analyzed OECD data for 2025 on net interest payments — government interest expenses minus interest income — in a post on his Telegram channel.
Read also: Debt ticks up, but Kazakhstan’s foreign borrowing stays safe.
Top 10 countries by debt interest payments as a share of government spending
According to the OECD data cited by Chebotarev, the countries with the highest shares of government expenditure allocated to net interest payments are:
- U.S. — 10.7%
- Italy — 10.1%
- Greece — 9.6%
- Brazil — 9.5%
- Portugal — 8.5%
- U.K. — 8.1%
- Mexico — 7.5%
- Canada — 6.8%
- Colombia — 6.8%
- India — 6.6%
The OECD average is 4.9%.
The problem lies in borrowing costs, not debt volume
Chebotarev attributes Kazakhstan’s high interest burden primarily to the cost of borrowing and the structure of its debt portfolio.
«With public debt at 22% of GDP — one of the lowest levels in the world — we are spending 11% of the budget on interest payments,» Chebotarev wrote. «We borrow at a very high cost. The structure of our debt portfolio hurts us more than the sheer size of the debt itself.»
The economist argues that the figures point to debt management, rather than the overall volume of borrowing, as a central concern. High interest payments leave less public funding available for other priorities.
«Every percentage point paid to creditors represents money that is not being spent on schools, roads or health care,» he noted.
Chebotarev also warned that countries facing high debt-servicing costs risk becoming trapped in a cycle in which borrowing to cover existing obligations increases their liabilities further.
«Breaking out of this cycle is virtually impossible without GDP growth or painful fiscal consolidation,» he concluded.
Previously, Kursiv.media reported that Kazakhstan’s total government and state-guaranteed debt reached 40.9 trillion tenge as of July 1, 2026. The figure includes obligations backed by state guarantees. During the second quarter, the total increased by 1.84 trillion tenge, or 4.7%.
