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Congressional Budget Office

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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 President’s 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 legislation.

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 mandates.

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.
Government 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. economy to foreign countries who loan the money to finance the U.S. debt.

How the CBO Affects You:

The CBO affects you by monitoring the President’s budget, thereby providing a bit of a safeguard on government spending. However, the result has still been a budget that continues to increase the national debt through deficit spending.

The CBO also provides a wealth of information about the economy and the impact of the budget on the economy.

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