In the federal budget, national parks and federal prisons are examples of mandatory spending.
<h3>What is meant by mandatory spending?</h3>
All spending that does not occur through appropriations legislation is referred to as mandatory spending. Spending that is necessary includes payments for entitlement programs like Social Security and Medicare as well as required interest payments on the nation's debt. About two-thirds of all federal spending is accounted for through mandatory spending.
Major budgetary trends are significantly influenced by mandatory spending. As more people become eligible for required programs like unemployment insurance and income security programs during economic downturns, government revenues decline and spending rises, leading to an increase in deficits or a decrease in surpluses.
Spending on entitlement programs and a few other payments to individuals, companies, and state and local governments are examples of mandatory or direct spending. Ordinarily, mandatory spending is not determined by annual appropriation acts but rather by statutory requirements.
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