What is mandatory and discretionary spending? Q.What is mandatory and discretionary spending? A.Lawmakers can control all spending except the interest due on government debts. However, discretionary spending often gets more scrutiny than mandatory spending or tax breaks that function much like spending programs. One reason for this imbalance is that discretionary spending must be re-approved each year. In contrast, most mandatory spending and tax expenditures continue from year-to-year without new approval. Read more about What is mandatory and discretionary spending?
How does the federal government spend its money? Q.How does the federal government spend its money? A.Federal spending totaled $6.3 trillion in 2023. About 66 percent of the total was for mandatory programs not subject to regular budget review, while nearly 26 percent covered discretionary programs for which Congress must regularly appropriate funds. Eight percent went for interest on government debt (figure 1). Read more about How does the federal government spend its money?
What are tax expenditures and how are they structured? Q.What are tax expenditures and how are they structured? A.Tax expenditures are special provisions of the tax code such as exclusions, deductions, deferrals, credits, and tax rates that benefit specific activities or groups of taxpayers. Read more about What are tax expenditures and how are they structured?