What is the largest expenditure for the US federal government?

Social Security
As Figure A suggests, Social Security is the single largest mandatory spending item, taking up 38% or nearly $1,050 billion of the $2,736 billion total. The next largest expenditures are Medicare and Income Security, with the remaining amount going to Medicaid, Veterans Benefits, and other programs.

Which of the following is the largest expenditure in the federal budget quizlet?

The two largest expenses are health programs (Medicaid and Medicare) and Social Security payments. These two areas account for more than fifty percent of the federal budget and are growing at a rapid pace.

What is the largest source of income for the federal government quizlet?

Personal income taxes and Social Security taxes are the largest sources of federal government revenues. The federal government derives roughly 75 percent of its revenue from these two sources.

Which is the largest source of revenue for the federal government?

individual income tax
The individual income tax has been the largest single source of federal revenue since 1950, amounting to about 50 percent of the total and 8.1 percent of GDP in 2019 (figure 3).

What is the largest and fastest growing category of federal government expenditures?

the transfer of payments
The largest and fastest-growing category of federal government expenditure is the transfer of payments.

What is California’s biggest expense?

education
The largest functional category of state expenditures (more than 30% of the total) is K–12 education, followed by health and human services (25%); higher education (11%); business, transportation, and housing (10%); and corrections (7%).

What are government expenditures?

Definition: Government expenditure refers to the purchase of goods and services, which include public consumption and public investment, and transfer payments consisting of income transfers (pensions, social benefits) and capital transfer.

Where does the largest amount of federal tax revenue come from quizlet?

At the federal level, individual income taxes provide the greatest revenue source. At the state and local level, individual income tax provides the largest tax source.

What are the major expenditures?

Major expenditure categories are healthcare, Social Security, and defense; income and payroll taxes are the primary revenue sources. The expenditures of the United States federal government as a percentage of GDP over time.

What are the 3 types of government expenditure?

Definitions and Sources
  • Recurrent expenditure – all payments other than for capital assets, including on goods and services, (wages and salaries, employer contributions), interest payments, subsidies and transfers.
  • Capital expenditure – payments for acquisition of fixed capital assets, stock, land or intangible assets.

What is the largest area of federal discretionary spending each year?

Discretionary spending refers to the portion of the budget that is decided by Congress each year through the appropriations process. In 2020, Congress budgeted $1.6 trillion in discretionary spending. By far, the biggest category of discretionary spending is spending on the Pentagon and military.

What are the two types of government spending quizlet?

The two types of government spending are goods and services and transfer payments.

What are the three largest local expenditures?

State and local governments spend most of their resources on education, health, and social service programs. In 2019, about one-third of state and local spending went toward combined elementary and secondary education (22 percent) and higher education (9 percent).

What are the main categories of US Federal government spending quizlet?

What are the main categories of U.S. federal government spending? The main categories are national defense, Social Security and Medicare payments, and interest on the debt.

Which of the following are the three largest categories of federal government discretionary spending?

Discretionary spending is generally divided into defense and nondefense. Major healthcare programs, Social Security, interest on the debt, defense discretionary, and nondefense discretionary make up the five largest parts of the federal budget.

What are the major expenditures of the state and local governments quizlet?

Salaries are the single largest expenditure for state & local governments.

Which of the following areas are among the four largest categories of federal spending?

The four main areas of federal spending are national defense, Social Security, healthcare, and interest payments, which together account for about 70% of all federal spending. When a government spends more than it collects in taxes, it is said to have a budget deficit.

What are the 12 categories of expenditures in the federal budget?

(1) Social security, (2) national defense, (3) income security, (4) Medicare, (5) health, (6) net interest on debt, (7) education/training/employment & social services, (8) transportation, (9) veterans’ benefits, (10) administration of justice, (11) natural resources & the environment, (12) other.

What is federal discretionary spending?

Discretionary spending is money formally approved by the President and voted on by Congress during the appropriations process each year. Generally, a majority of the discretionary spending is budgeted towards national defense.

What are the three largest categories of expenditures in the federal budget quizlet?

What are the three largest expenditures for the federal government? Income tax, Corporation income tax, Social Insurance tax.

What are the 3 largest federal sources of federal government revenue?

The three main sources of federal tax revenue are individual income taxes, payroll taxes, and corporate income taxes. Other sources of tax revenue include excise taxes, the estate tax, and other taxes and fees.