Final answer:
The missing phrase is 'entitlement program.' Transactions for government-mandated entitlement programs are recorded as revenue once eligibility is fulfilled. Mandatory spending includes social security and healthcare programs.
Step-by-step explanation:
Government-mandated and entitlement program transactions are recorded as revenue when the eligibility requirements have been met. Mandatory spending, which includes social security, Medicare, and Medicaid, is required by law for certain programs or interest payments on national debt. Much of this type of spending is automatic for entitlements—programs like social security where individuals are legally entitled to benefits if they meet certain eligibility requirements. On the flip side, discretionary spending pertains to areas where lawmakers can make choices on how to allocate funds. Another aspect of government finance is federal mandates, which impose demands or restrictions on states, sometimes without additional federal funding.