Government spending in the technical and strict sense is the public expenditure on goods and services or the money spent by the public sector which is a basic element of the GDP. However, spending policies of Government includes public works, expenditure, constituting budget targets and taxation, are key factors to economic growth.
With respect to the US treasury which entails discretionary spending, mandatory spending, and interest on debt. The discretionary and mandatory spending deals with more than 90% or two-third of the Government spending including government services and programs.
Interest on debt is not as broad like others, it is the interest paid by the Government on its acquired debt minus interest income received directly by the Government for its own asset. It is also important to note that US Government spending also include Federal, State, and Local Government spending net of intergovernmental transfers which involves transfer of federal spending to the other tiers of Government.
Recently, Government spending accelerated to 33208.09 USD Billions in the first section of 2019 from the estimated 3188.70 USD Billion in the 4th quarter of 2018. The average Government spending from 1950’s until 2019 was 2057.83 USD Billion with the highest spending recorded in 2009 with over 3328.05 USD Billions.
It is an indisputable fact that agencies of Government cannot spend beyond the appropriated and ratified funds by the congress. Approximately, half of the mandatory spending is focused on the elderly ones. Social security and Medicare offers immense advantage to the people with disability, families of the deceased or retired worker.
It also contains programs that are mostly governed by laws. Benefits and entitlement of pension to veteran military retirees is also part of the mandatory programs.
Furthermore, half of the discretionary spending is allocated to the defense of the country. Other discretionary spending entails employment, education, healthcare, administration of justice, transportation, and housing assistance.
Although spending for international development and humanitarian assistance for foreign military aid, educational training and services takes a smaller percentage from discretionary spending and other domestic programs. There is a portion for hurricane and wildfires.
Every year, lawmakers decide on the spending of the Federal Government and how it will be duly allocated among 15 cabinet department, plethora of agencies and commissions. The yearly budget brings the policy priorities and goals of the Government to be more feasible.
It has been proven time and again that the national defense is perhaps the leading objective of any Government in the US with the highest discretionary expenditure in furtherance of consolidating the strength and operations of the US Air Force, Marines, Army Navy, and others. Military Spendings has escalated at the beginning of the last decade.
Even the present Government in the United state under the leadership of President Donald Trump is believed to be spending more than 600 billion in 2019. Major defense expenditure on every yearly budget include the maintenance and procurement of new ammunition, maintenance and expansion of nuclear system, power projections, missile defence technology and cyber operations. This is in a bid to defend the nation from external attack, threat and defending the territorial integrity.