Simply put, there are two main types of government spending: mandatory vs discretionary spending. Mandatory spending is determined by pre-determined laws or regulations. It cannot be changed without an act of Congress. Discretionary spending, on the other hand, is set by Congress and can be changed at any time.
Can You separate essential vs discretionary spending?
Essential vs. Discretionary. With the Essential vs. Discretionary approach (aka “Income Floor”, “Floor and Upside”), you start by dividing your estimated retirement expenses into “essential” (housing, food, clothing, etc.) and “discretionary” (travel, entertainment, gifts, etc.). Then a portion of the portfolio is put into ...
What are two programs under discretionary spending?
law enforcement, education, veterans’ health programs, the national park system, disaster relief, and foreign aid. That spending is split about evenly between national defense and nondefense programs and activities. How Has Discretionary Spending Changed in Recent Years? In nominal terms, total, defense, and nondefense discre-tionary outlays all roughly doubled from 1999 to 2018.
What is true regarding mandatory spending?
The bulk of mandatory spending is for entitlement programs, which are social welfare programs with specific requirements. Congress sets eligibility requirements and benefits for entitlement programs. If the eligibility requirements are met for a specific mandatory program, outlays are made automatically.
What are some examples of discretionary spending?
Discretionary spending refers to purchases that aren’t considered essentials. It is what people often spend money on after they’ve settled their obligations like bills and debt. Discretionary spending are expenses that an individual doesn't require to live. Some examples include recreation and entertainment activities.
What is the difference between discretionary and mandatory spending quizlet?
Mandatory spending is spending that is required by current law and discretionary spending is spending that must be authorized by the government each year.
What is the difference between mandatory and discretionary spending AP Gov?
Discretionary: a spending category through which governments can spend through an appropriations bill. Versus... Mandatory: spending on certain programs that is required by existing law, such as with entitlement programs. A guarantee of access to benefits based on established rights or by legislation.
What is the difference between mandatory and discretionary spending What are some examples of some mandatory spending items?
For example, the administrative expenses associated with running the Social Security Administration generally are funded with discretionary spending, but the benefit checks sent to retirees and disability recipients enrolled in Social Security programs are classified as mandatory spending.
What is discretionary spending give an example?
Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops. Meals at restaurants and entertainment costs are examples of discretionary expenses.
What is discretionary spending in AP Gov?
Discretionary spending: The portion of the budget that the President requests and Congress appropriates every year. It. represents less than 1/3 of the federal budget, while mandatory spending accounts for around 2/3.
What is discretionary spending in government?
Discretionary spending is money formally approved by the President and voted on by Congress during the appropriations process each year. Generally, a majority of the discretionary spending is budgeted towards national defense.
What is discretionary spending give an example AP Gov?
Discretionary Spending. What the President and Congress must decide to spend for the next fiscal year through annual appropriations bills. Examples: FBI, Coast Guard, housing, education, space exploration, highway, construction, defense, and foreign aid.
What is discretionary spending AP Gov quizlet?
Discretionary spending is defined as those areas of the budget that the congress can change year to year and includes the 13 appropriation bills that fund the various agencies of the federal government.
What is mandatory spending?
Mandatory expenses refer to bills that have to be paid on a regular basis, such as rent or electricity.
How to determine discretionary expenses?
To determine the money available for discretionary expenses, take your monthly net income and subtract the monthly mandatory expenses. Next, subtract the savings you allot yourself every month. The remainder is what can go towards discretionary spending. Advertisement.
When making a budget, what comes first?
Calculating Expenses. When making a budget, mandatory expenses come first. After that, it is wise to set aside some money for savings, particularly for an emergency fund to fall back on in case of a job loss or some other unexpected event. Once these needs are taken care of, you can budget some money for discretionary spending.
Can a household eliminate discretionary expenses?
A household can eliminate discretionary expenses without having to face major problems such as potential eviction or having no power. Families might not want to see the digital cable go away, but cutting that bill would save money and not threaten the basic needs of life.
What is discretionary spending?
ANSWER: " Discretionary spending" refers to the funds allocated by Congress to cover the administrative expenses of executive branch agencies, congressional offices and agencies, and international operations of the government. For example, most defense, education, and transportation programs are funded this way as are a variety of other federal programs and activities. It includes programmatic funding in these areas as well money for staff salaries and operating expenses. These funds must be authorized and appropriated by Congress and the President each year in order to keep the government open and operating.
Is Social Security a discretionary program?
Some federal programs are a combination of both discretionary and mandatory spending. For example, the administrative expenses associated with running the Social Security Administration generally are funded with discretionary spending, but the benefit checks sent to retirees and disability recipients enrolled in Social Security programs are classified as mandatory spending.
Answer
Mandatory spending is something that either has, or is strongly urged to be done. Discretionary spending is based on the spenders discretion, if the spender thinks it needs to be spent, then they would do so. Example of mandatory spending would be paying back a loan. Example of discretionary spending would be a good business investment.
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