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What is the difference between discretionary and non discretionary spending?

Updated: 8/19/2023

Wiki User

∙ 10y ago

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Discretionary fiscal policies are those that are enacted in response to a need, for example, a tax cut. Non-discretionary fiscal policies are those that happen regardless of conditions or need, for example, the welfare system.

Wiki User

∙ 9y ago

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Wiki User

∙ 10y ago

Non-discretonary spending is spending that has to be spent. Discretionary spending is spending that may or may not be spent and there is a choice about what to spend the money on.

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Related questions

What is non-discretionary spending?

Amounts of money which basically have "already been spent" i.e. already encumbered by contracts or promises to pay.

Distinguish between discretionary and non-discretionary fiscal policy?

Non-discretionary policies are ones that automatically happen. A progressive income tax and the welfare system both act to increase aggregate demand in recessions and to decrease aggregate demand in overheated expansions. Discretionary policies are those that the government chooses to do in response to conditions -- e.g. enact a tax rate cut.

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Projects where management has a choice in implementing them are called discretionary projects. Projects where no choice exists are called nondiscretionary projects.

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Agriculture is farming and non-agriculture is non farming.

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