What is the difference between mandatory and discretionary spending?

The difference between mandatory and discretionary spending relates to whether spending is dictated by prior law or voted on in the annual appropriations process. Another type of appropriation spending is called supplemental appropriations, in which spending laws are passed to address needs that have arisen after the fiscal year has begun.

How does discretionary spending affect government spending?

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.

Why does discretionary spending get more scrutiny than mandatory spending?

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.