Federal Spending

●Discretionary spending

■revenue which government

planners can make a choice
about

●defense, welfare, education,

etc.

★Entitlement Programs

●Social welfare programs that people

are “entitled” to

■Social Security
■Medicare
■Medicaid

●medical benefits for low income

families

●The future of entitlement spending

■it will increase as “baby boomers”

become older

★Discretionary Spending

●Defense spending

■consumes about 20% of the federal

budget

●Other discretionary spending

■education, training, research, student

loans, technology, national parks,
law enforcement, the environment,
and housing

★Federal Aid to State and Local

Governments

●Grants-in-aid
●Called intergovernmental revenue