Question

What is an entitlement program? How do entitlement programs differ from other programs?

Answer 1

Entitlement program is the program of the Federal government under which individuals with specific eligibility criteria are entitled to receive benefits from government. These individuals might receive social security benefits medicaid and Medicare benefits and unemployment insurance depending upon their type and eligibility. These are mandatory payments which have to be made even if the government is running a budget deficits and is not able to pay. These programs are different from other programs because of their nature of being mandatory. While other programs are based on the discretion, these programs are based on mandatory proposal and therefore the government has to make payments (timely) without being default.