ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Mandatory spending, also known as direct spending, consists of budget authority and resulting outlays provided in laws other than appropriations acts and is typically not appropriated each year. Mandatory spending, which requires changes in authorizing legislation, is not normally considered on an annual basis.

Detailed explanation-2: -Mandatory spending, also known as direct spending, is mandated by existing laws. This type of spending includes funding for entitlement programs like Medicare and Social Security and other payments to people, businesses, and state and local governments.

Detailed explanation-3: -In particular, multi-year appropriations are often used for housing programs and military procurement programs. Direct spending, also known as mandatory spending, refers to spending enacted by law, but not dependent on an annual or periodic appropriation bill.

Detailed explanation-4: -"Discretionary” means that the money will have to be approved by Congress as part of the annual appropriations process, while “mandatory” means the spending is automatic.

Detailed explanation-5: -Social Security and Medicare are the largest mandatory programs the U.S. government has to pay for. Congress establishes the mandatory programs.