They can changes these expenditures without requiring any changes in any current law. Mandatory - This includes expenditures that cannot be changed unless the law changes. This category includes expenditures on Social Security, Medicare, Medicaid, Food Stamps, interest on the national debt. The government's expenditures and types of taxes have substantially changed over time. The amount of spending on social welfare related programs has dramatically increased.
Entitlements now account for the greatest use of tax revenues.
The government runs a deficit when its expenditures exceed its tax revenue. The government finances its deficit by selling government securities like Treasury bills, notes, and bonds. The federal debt is the accumulated value of the current and past deficits. This gives the total amount the government owes to the domestic and foreign holders of its assets. Deficits are not new.