Question : What is the difference between mandatory spending and discretionary spending?

Option 1: Mandatory spending is spending that is authorized by Congress every year, while discretionary spending is spending that is not authorized by Congress every year

 

Option 2: Mandatory spending is spending that is required by law, while discretionary spending is spending that is not required by law

 

Option 3: Mandatory spending is spending that is authorized by the President, while discretionary spending is spending that is authorized by Congress

 

 

Option 4: Mandatory spending is spending that is required by the Constitution, while discretionary spending is spending that is not required by the Constitution

Correct Answer: Mandatory spending is spending that is required by law, while discretionary spending is spending that is not required by law

Solution : The correct answer is (b) Mandatory spending is spending that is required by law, while discretionary spending is spending that is not required by law.

Mandatory spending, also known as entitlement spending, refers to government expenditures that are determined by existing laws and obligations. These are typically programs like Social Security, Medicare, Medicaid, and other mandatory benefit programs. The funding for mandatory spending is considered mandatory because it is required by the eligibility criteria and rules established in the legislation.

On the other hand, discretionary spending is spending that is determined by annual appropriation acts passed by Congress. It includes funding for various government agencies, defense, education, infrastructure, research, and other programs. Unlike mandatory spending, discretionary spending is subject to annual budget decisions and can be adjusted by Congress through the appropriations process.

To summarize, mandatory spending is legally required, while discretionary spending is subject to annual congressional appropriations.