Question

[C]utting programs that were not effective or essential and even some that were, but are now unaffordable; and precisely targeting our investments. Every department will feel the impact of these reductions as they cut programs or tighten their belts to free up more resources for areas critical to economic growth.

— President Barack Obama,

2012 Budget Message of the President

In this statement, which type of spending is President Obama referring to? A)mandatory
B)discretionary 
C)interest
D)tax
The correct answer is B)discretionary

Answer 1

D. Discretionary

Answer 2

Option B i.e discretion is the right and correct answer.

[C]utting programs that were not effective or essential and even some that were, but are now unaffordable; and precisely targeting our investments. Every department will feel the impact of these reductions as they cut programs or tighten their belts to free up more resources for areas critical to economic growth. —President Barack Obama, 2012 Budget Message of the President.

The President above clearly refers to the Discretion Spending where portion of the budget is decided by Congress through the annual appropriations.