Discretionary Spending
- The federal government purchases new defense equipment.
- The government is planning to build more highways.
- The government funds a scientific research project.
Mandatory Spending
- Nick receives a weekly amount from the government because he became unemployed when his company cut costs by laying off employees.
- Gloria is a 70-year old retired woman. She pays her expenses with the income she receives from the government.
- Jill receives inpatient hospital services even though she cannot afford them.
Discretionary Spending are government spending implemented through a law.
Mandatory Spending is divided into three categories; compulsory expenses, discretionary expenses and interest on debt.
