Question

Analyze the distinction between discretionary spending and mandatory spending.

Answer 1

Mandatory spending is spending that must take place and it does not go through the appropriation process. This is why mandatory spending is also known as entitlement spending. This type of spending goes toward programs like social security, Medicare, Medicaid, etc.

On the contrary, discretionary spending must be approved by Congress every year through the appropriation process. Also, unlike the mandatory spending, discretionary spending is subject to a predetermined limit every year.