What term describes mandatory spending in the budget?

The term that accurately describes mandatory spending in the budget is entitlement spending. This refers to government spending that is required by law for specific programs, such as Social Security, Medicare, and Medicaid. These programs provide benefits to individuals who meet certain eligibility criteria, and the funding for them is not subject to the annual appropriations process that discretionary spending undergoes.

Entitlement spending is considered mandatory because the government is legally obligated to provide these benefits to eligible recipients, regardless of the current budgetary conditions or other priorities. In contrast, discretionary spending can be adjusted from year to year based on the government's budget decisions, and tax expenditures refer to the loss of tax revenue due to exemptions, deductions, or credits. Fiscal policy is a broader term that encompasses government spending and taxation as tools to influence the economy. Understanding the distinction between these terms helps clarify the structure of government budgets and priorities in the allocation of resources.