DISCRETIONARY SPENDING Definition

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DISCRETIONARY SPENDING consists of US government expenditures that are set on an annual basis. It is a budget that members of Congress can adjust on a yearly basis. Examples of discretionary spending in the United States:

-defense budget
-education
-Environmental Protection Agency
-Department of Veterans Affairs

When looking to cut costs, lawmakers usually look to trimming discretionary spending. See MANDATORY SPENDING.

Learn new Accounting Terms

SURCHARGE is a charge added on top of another charge for a specific service, product or purpose.

COST AVOIDANCE is an action taken in the present designed to decrease costs in the future.

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