WebOct 24, 2024 · Federal spending is classified in two basic categories: mandatory and discretionary. About 63 percent of the federal budget is mandatory spending, 30 … WebMay 6, 2024 · Explanation: Discretionary Spending is a category of government spending that a government can issue under an expenditure law. These expenditures are optional in the context of the fiscal policy and thus stand in contrast to the Mandatory Spending, thus obligatory expenditures, which are conditioned by separate laws.

Discretionary vs. Mandatory Spending - Mike Simpson

WebMandatory Expenses Definition. Mandatory expenses usually come in the form of bills for about the same amount of money per month. These stable but necessary payments can include rent, utility payments and car loan payments. Short-term but vital expenses can also count as mandatory after the fact, such as paying to replace a flat tire. WebIn most cases, but not all, mandatory spending is ongoing; it occurs each year absent a change in an underlying law that provides the funding. Discretionary spending, on the other hand, will not occur unless Congress acts each year to provide the funding through an appropriations bill. gage whitley

Lesson 2: Where Does our Money Go?

WebApr 30, 2024 · The Federal Budget in Fiscal Year 2024: An Infographic. April 30, 2024. Graphic. The federal deficit in 2024 was $3.1 trillion, equal to 14.9 percent of gross … WebFeb 17, 2016 · Under the president’s proposal, $1.15 trillion in discretionary spending would make up less than a third (27 percent) of all federal spending while 66 percent of spending, or $2.78 trillion, would … WebDiscretionary vs. Direct Spending Discretionary spending is provided and controlled by appropriations acts. Direct spending (also referred to as mandatory spending) is provided and controlled by other laws. These classifications are defined in statute (2 U.S.C. §900(c)(7)-(8)) for purposes of procedural and statutory budget enforcement rules. black and white photography logos