Discretionary spending and mandatory spending?

Discretionary spending:

-The federal government purchases new defense equipment.

-The government is planning to build more highways.

-The government funds a scientific research project.

Mandatory spending:

-Nick receives a weekly amount from the government because he became unemployed when his company cut costs by laying off employees.

-Gloria is a 70-year old retired woman. She pays her expenses with the income she receives from the government.

-Jill receives inpatient hospital services even though she cannot aford them.

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. About a third of the federal budget of the United States falls under the scope of discretionary spending.

On the contrary, Mandatory Spending refers to a category of government expenditures that must be spent on specific programs under existing laws.

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