What is an example of discretionary spending quizlet?

Discretionary spending is what the President and Congress must decide to spend for the next fiscal year through annual appropriations bills. Examples include money for such programs as the FBI, the Coast Guard, housing, education, space exploration, highway construction, defense, and foreign aid.

What is an example of mandatory and discretionary government 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.

What is discretionary spending used for government?

Nondefense discretionary spending funds an array of federal activities in areas such as education, transportation, income security, veterans’ health care, and homeland security. Over the past four decades, spending in that category has generally ranged from about 3 percent to 4 percent of GDP.

What is included in discretionary spending?

What is discretionary spending? Discretionary spending refers to non-essential items, such as recreation and entertainment, that consumers purchase when they have enough income left over after paying the necessary expenses such as the mortgage and utilities.

What is discretionary spending in Congress?

Discretionary spending is spending that is subject to the appropriations process, whereby Congress sets a new funding level each fiscal year (which begins October 1st) for programs covered in an appropriations bill. … Mandatory spending is simply all spending that does not take place through appropriations legislation.

Is Medicare discretionary spending?

The United States federal budget consists of mandatory expenditures (which includes Medicare and Social Security), discretionary spending for defense, Cabinet departments (e.g., Justice Department) and agencies (e.g., Securities & Exchange Commission), and interest payments on debt.

What are 4 examples of discretionary spending?

Some examples of areas funded by discretionary spending are national defense, foreign aid, education and transportation.

What is an example of discretionary?

Left to or regulated by one’s own discretion or judgment. The definition of discretionary is something that you use as desired or needed. … When you have petty cash available to you to use, the money you spend is an example of discretionary spending.

Which is the largest item in discretionary spending?

By far, the biggest category of discretionary spending is spending on the Pentagon and military. In most years, this accounts for more than half of the discretionary budget.

What are the two categories of discretionary spending?

Totaling about one-third of the federal budget, discretionary spending programs can be further divided into two categories: defense and non-defense.

What are examples of mandatory spending?

Outlays for the nation’s three largest entitlement programs (Social Security, Medicare, and Medicaid) and for many smaller programs (unemployment compensation, retirement programs for federal employees, student loans, and deposit insurance, for example) are mandatory spending.

What are the three largest discretionary items in the federal budget?

Discretionary Spending

The rest must pay for all other domestic programs. The largest of these programs are Health and Human Services, Education, and Housing and Urban Development.

Is welfare a discretionary spending?

Discretionary spending does not include expenses for Medicare, Medicare, TANF, and other mandatory programs. By law, these are fixed expenses of the government budget.

What is the difference between discretionary and entitlement spending?

Discretionary spending is spending that politicians have to vote for in order for it to take place. Mandatory spending is spending that doesn’t have to be approved by Congress: it happens automatically even if Congress doesn’t vote for it. … Social Security is also an example of entitlement spending.

What is the main difference between discretionary spending and mandatory spending?

What is the difference between mandatory spending and discretionary spending? Mandatory spending is spending that is required by current law and discretionary spending is spending that must be authorized by the government each year.

Is the military discretionary spending?

Defense spending accounts for more than 10 percent of all federal spending and nearly half of discretionary spending. Total discretionary spending — for both defense and nondefense purposes — is typically only about one-third of the annual federal budget.

Which are examples of non discretionary government expenditures?

Non-discretionary spending is essential and non-negotiable spending defined within a budget. What are Non-Discretionary examples? Examples of these expenses include: rent, food, or mortgage payments. In contrast, discretionary spending refers to non-essential expenses, such as hobbies and travel.

What are the types of spending?

The Four Types of Spending are Abundant Spending, Neutral Spending, Scarcity Spending, and Avoidance Spending.

What 3 countries spend the most on defense?

This is a list of countries by military expenditure in a given year. Military expenditure figures are presented in United States dollars based on either constant or current exchange rates.
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2.4.
Rank Country Spending (US$ bn)
1 United States 738.0
2 China 193.3
3 India 64.1
4 United Kingdom 61.5

How much is NASA’s budget?

Annual budget

NASA’s budget for financial year (FY) 2020 is $22.6 billion. It represents 0.48% of the $4.7 trillion the United States plans to spend in the fiscal year. Since its inception, the United States has spent nearly US$650 billion (in nominal dollars) on NASA.

How much of federal budget is discretionary?

In the 1960s, two-thirds of total federal spending went to fund discretionary programs. In 2022, discretionary spending is projected to be about 30 percent of the budget.

Which country is the richest in the world?

Luxembourg
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Rank Country GDP-PPP ($)
1 Luxembourg 126,569
2 Ireland 111,360
3 Singapore 107,677
4 Qatar 100,037
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Nov 30, 2021