Final answer:
Interest on national debt is categorized as mandatory spending, while defense and non-defense spending are considered discretionary. Social Security, Medicare, and Medicaid are also in the mandatory category, as they are entitlement programs eligible individuals are legally guaranteed to receive.
Step-by-step explanation:
Mandatory vs. Discretionary Spending Categories
When it comes to the United States federal budget, spending can be divided into two main categories: mandatory spending and discretionary spending. Mandatory spending is that which is required by law, and discretionary spending is that which can be adjusted by Congress during the budget process. Here is how each of the provided categories should be classified:
- Interest on national debt - Mandatory
- Defense - Discretionary
- Non-defense spending - Discretionary
- Social Security, Medicare, and Medicaid - Mandatory
The budget consists of both mandatory and discretionary spending. Mandatory spending includes entitlement programs such as Social Security, Medicare, and Medicaid, which are guaranteed to qualified individuals. It represents a significant portion of federal outlays. Discretionary spending requires annual authorization by Congress and includes military defense, education, and transportation, among other areas.