Mandatory Spending in Budgeting in Selected OECD Countries

Mandatory government spending represents a growing share of public budgets, creating challenges for fiscal sustainability, transparency, and financial flexibility. This OECD report examines how eight countries, including the United States, manage spending obligations established through legislation rather than annual appropriations. It evaluates fiscal rules, budget oversight, spending reviews, and accountability practices, highlighting the pressures of aging populations and rising public debt. Through international case studies, the report identifies strategies to strengthen expenditure controls, improve financial reporting, and ensure mandatory spending remains aligned with long-term government priorities and fiscal sustainability.