Federal Government Spending Overview

Study Notes

Federal Government Spending

Mandatory Spending: Required by law; does not need annual approval.
Discretionary Spending: Authorizations needed each year; includes government departments and agencies.
Entitlements: Social welfare programs that provide benefits to individuals meeting specific criteria; automatically funded.
Medicaid: A government program offering medical insurance specifically for low-income individuals and families.
Federal Budget: A comprehensive plan outlining the allocation of federal tax revenue for various expenditures throughout the fiscal year.
Fiscal Year: A 12-month period used by organizations for accounting and budgeting; not always aligned with the calendar year.
Appropriation: Designated amounts of money allocated for specific governmental functions or projects.
Transfer Payments: Financial distributions to individuals without a requirement for services in return; often aimed at providing social support.
Grant-in-Aid: Financial assistance from the federal government to state or local governments for specific projects or programs.
Private Sector: The portion of the economy comprised of businesses and entities owned by individuals, distinct from government ownership.
Comparison of Spending Types: Mandatory spending is dictated by law, while discretionary spending requires annual government approval, often influencing budgetary priorities.
Medicaid's Role: Serves as an essential entitlement program for healthcare access among low-income citizens, ensuring necessary services are provided based on eligibility criteria.

Description

This quiz delves into the different aspects of federal government spending, highlighting mandatory and discretionary spending, entitlements, and programs like Medicaid. It also covers essential concepts like the federal budget and fiscal year. Test your knowledge on how federal funds are allocated and managed.