Congressional Budget Office

File:Introduction to the Congressional Budget Office.webm

Congressional Budget Office

The Congressional Budget Office (CBO) is a nonpartisan agency within the legislative branch of the United States government. It provides budgetary and economic information to Congress, aiding in the legislative process by offering objective analyses and estimates of the fiscal impact of proposed legislation.

History

The CBO was established in 1974 by the Congressional Budget and Impoundment Control Act. This act was a response to growing concerns about the need for Congress to have its own independent source of budgetary information, separate from the executive branch. The first director of the CBO was Alice Rivlin, who served from 1975 to 1983.

Mission and Functions

The primary mission of the CBO is to provide Congress with nonpartisan analyses for economic and budget decisions and with estimates required for the Congressional budget process. The CBO performs several key functions:

• Budgetary Analysis: The CBO prepares reports and analyses of the federal budget, including projections of future budgetary outcomes under current law.
• Economic Forecasting: The CBO provides economic forecasts that include projections of GDP growth, unemployment, inflation, and other key economic indicators.
• Cost Estimates: The CBO provides cost estimates for proposed legislation, which are crucial for the Congressional budget process.
• Long-term Projections: The CBO also provides long-term budgetary projections, which help Congress understand the potential future impact of current policies.

Structure

The CBO is headed by a director, who is appointed jointly by the Speaker of the House of Representatives and the President pro tempore of the Senate. The director serves a four-year term and can be reappointed. The CBO staff is composed of economists, public policy analysts, and other professionals who work to provide accurate and timely information to Congress.

Reports and Publications

The CBO regularly publishes reports that are available to the public. These include:

• The Budget and Economic Outlook: An annual report that provides projections for the federal budget and the economy over the next ten years.
• An Analysis of the President's Budget: A report that analyzes the budgetary proposals of the President.
• Long-Term Budget Outlook: A report that examines the long-term fiscal challenges facing the United States.

Impact and Criticism

The CBO is widely respected for its nonpartisan and objective analyses. However, it has faced criticism from various political groups, often depending on whether its analyses support or contradict their policy positions. Despite this, the CBO's work is considered essential for informed legislative decision-making.

Also see

• United States Congress
• Office of Management and Budget
• Federal Budget Process
• Economic Policy