Explain the difference between discretionary an automatic spending by the government

Expert Solution

Discretionary spending::

It is a government spending.
Implemented through appropriate bills.
Mandatory and determined by the recipients.
Example national defense, Education, transportation etc.
In U S it refers to optional spending.
Set by appropriate levels.
At the discretion of congress.
It levels both the House and Senate Committees.
These sub committees produce bills
For the next fiscal year.
Bills are subject to revisions.
Through hearings and conference.
And are approved and followed by both houses of congress.
President signs them
Or allows them to become law.

Where as Automatic spending:-

Used to describe
Economy's Expenditure.
Impacted by the same Economy''
Real level of Income.
Automatic spending is considered automatic.
Whether occuring at government level or Individual level.
It is considered independent in nature.
These expenses have the ability.
To maintain state of autonomy.
Autonomous Expenditure is tied to consumption.
Including financial obligations.
To maintain standard of living.
Majority of government spending
Qualifies Autonomous Expenditure.
Spending relates to the efficient
Running of a Nation
To make the Expenditures required
To maintain minimum standards.

Rahul Sunny answered 3 years ago

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