Discretionary Spending (CRS Report for Congress)
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| Release Date |
Revised Oct. 25, 2007 |
| Report Number |
RS22128 |
| Report Type |
Report |
| Authors |
D. Andrew Austin, Government and Finance Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
Federal spending has changed, both in size and composition over the last 40 years.Total federal spending is now a larger percentage of the economy (as measured by grossdomestic product - GDP) than it was in 1965 (19.8% of GDP vs 17.2% of GDP).Mandatory spending (generally spending that result from laws other than appropriationsacts, such as Social Security and Medicare), has grown substantially, both as apercentage of GDP and as a percentage of total spending to become, today, the largestcomponent of federal spending. Mandatory spending, without significant changes to theprograms composing it, will continue growing as a percentage of GDP and as apercentage of total outlays into the future.Discretionary spending (generally outlays that result from the budget authorityprovided in appropriations acts, such as defense, education, and transportation), and inparticular its defense spending component, has shrunk over the last 40 years. Defensespending in 1965 dominated the budget, making up 43.2% of total spending. Totaldiscretionary spending was 65.8% of total outlays. In 1965, defense spending was 7.4%of GDP and total discretionary spending was 11.3% of GDP. By 2004, defensespending had fallen to 19.8% of total spending and 3.9% of GDP. Total discretionaryspending had fallen to 39.1% of total spending and 7.8% of GDP.Under President Bush's FY2006 budget proposals (February 2005) discretionaryspending will continue falling as shares of total spending and of GDP over the next fiveyears (if not longer).
