Exploring the Federal Budget:

Directions:
Using this link from the CBO explore the website to better understand the Federal
Budget
Please change your answers to BLUE text.

https://www.cbo.gov/publication/58268

Define:

Mandatory Spending- Primarily payments for benefit programs whose eligibility rules
and benefit formulas are set by law

Discretionary Spending- Spending that lawmakers control through annual appropriation

acts

Mandatory spending:

List 5 big items that make up Mandatory Spending in the 2021 Budget:

Major health care programs

Income Security Programs
Social Security
Federal Civilian and Military Retirement
Veterans Program

How much was total spending by the Federal Government was Mandatory Spending of
the total budget?
4.8 Trillion

Discretionary Spending:

List 5 or more items that make up the Discretionary Spending in the 2021 Budget:

Nondefense
Defense
Health
Procurement
International affairs

How much was total spending by the Federal Government was Discretionary Spending
of the total budget?

Discretionary outlays by the federal government totaled $1.7 trillion in 2022.

Nondefense outlays were higher than those for defense activities partly because of
spending for programs enacted in response to the coronavirus pandemic.

Revenue:

Define-
Revenue- Income

List the items that make up the Revenue by the Federal Government:
Individual income taxes
Payroll taxes
Corporate income taxes

How much total revenue did the federal government collect in 2021?

$4.0 Trillion

Complete these two formulas, what do you notice:

MD + DS= Total Spending

Federal Budget:

Total Revenue - Total Spending= left over balance