Final answer:
The government spends a considerable portion of its budget on interest payments due to the need to cover budget deficits through borrowing. Over time, accumulated debts lead to substantial interest expenses; however, efforts to reduce debts, such as running budget surpluses and capitalizing on low interest rates, can lower these payments.
Step-by-step explanation:
The government may end up spending most of its money on interest payments on debts due to budget deficits, where government revenue is less than its spending. To cover this extra spending, the government borrows money from the public through bonds or securities, accumulating debt over time. As debts increase, so do the interest payments, which must be made to keep up with financial obligations.
In the period between the 1960s and the late 1990s interest payments on federal government borrowing generally ranged from 1-2% to above 3% of GDP. Deficits from previous administrations, particularly during the 1980s, led to significant debt levels, making interest payments one of the largest non-defense federal expenses.