What is a statutory expenditure?

What is a statutory expenditure?

Statutory expenditures, on the other hand, are defined as those expenditures which are obligatory for government to undertake.

What are the types of government spending?

The U.S. Treasury divides all federal spending into three groups: mandatory spending, discretionary spending and interest on debt. Mandatory and discretionary spending account for more than ninety percent of all federal spending, and pay for all of the government services and programs on which we rely.

What are discretionary expenses?

A discretionary expense is a cost that a business or household can survive without, if necessary. Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops.

What is the meaning of recurrent expenditure?

Recurrent expenditure – all payments other than for capital assets, including on goods and services, (wages and salaries, employer contributions), interest payments, subsidies and transfers. A good example would be building of schools, hospitals or roads.

What is meant by public spending?

Public spending is expenditure incurred by the “public sector” in the course of its activities. This includes in particular spending on social services and benefits, health provision, transport, education, defence, debt interest, housing, judicial and protective services and employment.

How is government spending financed?

Central government borrowing Government must borrow if its revenue is insufficient to pay for expenditure – a situation called a fiscal deficit. Borrowing, which can be short term or long term, involves selling government bonds or bills.

What is an intermittent expense?

Intermittent expenses. Expenses that occur at various times throughout the year and tend to be in large amounts(tuition payment, car repairs) Discretionary (non-essential) expenses. Expenses for things we don’t need (eating out, gifts, snacks)

What makes up statutory expenditures in the budget?

Statutory expenditures are those that have already been authorized by previously adopted legislation; they are presented in the Estimates for information purposes only. Statutory expenditures account for about two thirds of total federal spending. Non-statutory expenditures need a specific authorization in an appropriation act.

What is the definition of mandatory spending in the US?

Mandatory—or direct—spending includes spending for entitlement programs and certain other payments to people, businesses, and state and local governments. Mandatory spending is generally governed by statutory criteria; it is not normally set by annual appropriation acts.

Where does the discretionary spending authority come from?

The authority for discretionary spending stems from annual appropriation acts, which are under the control of the House and Senate Appropriations Committees. Most defense, education, and transportation programs, for example, are funded that way, as are a variety of other federal programs and activities.

What is the purpose of government spending estimates?

The Main Estimates identify planned government spending and the spending authorities for which the government seeks Parliament’s approval annually. Individual items in the Estimates indicate the amount of funds required by the government for particular activities or programs.