What CBO Is:
The Congressional Budget Office (CBO) was established by Congress
in 1974 to assist the House
and Senate Budget Committees
analyze the yearly budget submitted by the Presidents Office of Management and Budget (OMB
CBO employs about 230 people, primarily economists and public policy analysts.
What CBO Does:
In late January of each year, the CBO reports on the economic and budget outlook, including estimates
of spending and revenue levels for the next 10 years. This budget baseline serves as a neutral
benchmark against which Members of Congress can measure the budgetary effect of proposed
About one month after the President submits his budget to Congress, CBO delivers an
independent re-estimate of his proposals. This permits Congress to compare the President's
proposals to other proposals using a consistent set of economic assumptions.
Throughout the year, CBO provides the budget impact of all proposed legislation. It specifically
looks to identify the cost of unfunded
How the CBO Affects the U.S. Economy:
The CBO affects the economy in two ways. First, it provides
information to Congress about a budget that stimulates the economy through deficit spending
spending creates jobs both directly and through government contracts. Similarly, the information
about the economy that it gives to Congress allows a budget that increases the national debt each
year. This increases the vulnerability of the U.S.
to foreign countries who loan the money to finance the U.S. debt
How the CBO Affects You: