What is the purpose of the CBO?

The Congressional Budget Office (CBO) is a nonpartisan agency that provides objective economic and budgetary analysis to support Congress in its legislative and budgetary decisions.

Its primary purposes include:

Budgetary Analysis:

1. Cost Estimates:
   • The CBO prepares cost estimates for proposed legislation, analyzing the potential budgetary impact of bills and their effects on spending, revenues, and deficits.
   • These estimates help Congress understand the financial implications of proposed policies before making decisions.
2. Baseline Budget Projections:
   • The CBO provides baseline budget projections, offering a framework for evaluating the implications of policy changes on federal spending, revenues, and deficits over the long term.

Economic and Policy Analysis:

1. Economic Projections:
   • The CBO conducts economic analysis and provides economic forecasts, including projections on economic growth, inflation, and employment trends.
   • These projections assist policymakers in understanding the broader economic context when crafting legislation.
2. Policy Options and Alternatives:
   • The CBO evaluates various policy options and alternative approaches to address fiscal challenges, providing Congress with information on potential outcomes and trade-offs.

Support for Congressional Decision-Making:

1. Informing Legislative Choices:
   • By providing comprehensive analysis and information, the CBO aids Congress in making informed decisions on a wide range of issues, including taxes, healthcare, social programs, and more.
2. Independent and Nonpartisan Analysis:
   • The CBO maintains nonpartisan independence, offering objective analysis and assessments that are not influenced by political considerations.
   • Its reports and analyses are widely respected for their credibility and impartiality.

Budget Process Support:

1. Assessment of Budgetary Procedures:
   • The CBO assists Congress in evaluating the potential impact of budgetary rules and procedures, ensuring compliance with budgetary constraints and guidelines.
2. Budgetary Reconciliation:
   • During the budget reconciliation process, the CBO evaluates proposed changes to existing laws and programs to estimate their budgetary effects.

Accountability and Transparency:

1. Promoting Accountability:
   • The CBO’s analysis helps hold lawmakers accountable for the fiscal implications of their policy choices by providing information on the expected costs and effects of legislation.
2. Public Disclosure:
   • The CBO’s reports, cost estimates, and analyses are made public, enhancing transparency and allowing for public scrutiny of proposed legislation.

The Congressional Budget Office plays a crucial role in supporting Congress by providing impartial and detailed analysis on budgetary matters, economic forecasts, and the potential impacts of legislative proposals.

Its analyses serve as a vital resource for lawmakers as they make decisions on fiscal policy and budget matters.