Certified Government Financial Manager (CGFM) Practice Exam

Question: 1 / 875

Which type of spending does NOT go through the appropriation process?

Discretionary spending

Mandatory spending

Mandatory spending is the correct answer because it refers to expenditures that are required by law and do not require annual approval through the appropriation process. This category includes programs such as Social Security and Medicare, where funding levels are determined by existing statutes rather than the annual budget process. Therefore, once these programs are established, they automatically receive funding without the need for further legislative action each year.

In contrast, discretionary spending, which includes spending for defense, education, and other government programs, must be evaluated and approved through the appropriations process on an annual basis. Supplemental spending refers to additional funds allocated for unforeseen expenses and typically requires an appropriations process as well. Federal grants are also initiated through the appropriations process to provide funding for specific projects or programs.

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Supplemental spending

Federal grants

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