Spending that must be paid toward a policy due to previous laws and that cannot be modified by the annual budget is referred to as ______.

Question

Quizplus · Accepted Answer

Mandatory spending refers to spending that must be paid toward a policy due to previous laws and that cannot be modified by the annual budget. This includes programs such as Social Security, Medicare, and Medicaid, which require mandatory spending based on eligibility criteria for beneficiaries. In contrast, discretionary spending is subject to the annual budget process and can be adjusted by Congress through appropriations bills. Deficit spending refers to spending in excess of revenues, and compelled spending is not a commonly used term in government budgeting.

Spending That Must Be Paid Toward a Policy Due to Previous