ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Mandatory expenditures, such as Social Security, Medicare, and the Supplemental Nutrition Assistance Program, account for about 65% of the budget.

Detailed explanation-2: -The U.S. Treasury divides all federal spending into three groups: mandatory spending, discretionary spending and interest on debt.

Detailed explanation-3: -Some examples of areas funded by discretionary spending are national defense, foreign aid, education and transportation.

Detailed explanation-4: -There are two types of spending in the federal budget process: discretionary and mandatory. 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.