Question

Explain the difference between discretionary an automatic spending by the government

Answer 1

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.