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TeachMeFinance.com - explain discretionary spending limits (or caps) discretionary spending limits (or caps) -- Ceilings imposed on
the amount of budget authority provided in annual appropriation acts and
on the outlays that flow from that budget authority. The limits, which
are set forth in section 251 of the Deficit Control Act (as amended), currently
apply through fiscal year 2002. Separate caps have often been imposed on
specific categories of discretionary spending, such as defense, highways,
and violent crime reduction. Each discretionary spending limit is enforced
through sequestration.
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