Question

Spending on Social Security and Medicare currently (2015/2016) represents ____________% of federal outlays, and by 2030 spending on both programs combined is projected to represent ____________% of federal outlays.

Select one:

a. 8% and 14%

b. 38% and 50%

c. 50% and 75%

d. 14% and 38%

Answer 1

The correct answer is ( b ).

Federal outlay on Social Security and Medicare in 2015-16 budget was 38% of total federal outlays and by 2030 spending on both programs combined is projected to represent 50% of total federal outlays as population ages.

The above data can be found from the website of congressional budget office.

The expected increase in federal outlays on Social security and Medicare in 2030 is due to ageing population which will lead to more financial burden on the federal budget leading to more manadatory spending.