Statement of June E. O'Neill, Director Congressional Budget Office on Capital Budgeting Before the President's Commission to Study Capital Budgeting

Abstract

This report presents the views of the Congressional Budget Office on capital budgeting. First, we must retain the budgetary practice of recognizing the full cost of a decision to acquire an asset--no matter how long its expected useful life-when that decision is made. The up-front, full-cost basis of accounting for capital acquisition at the governmentwide level is conceptually sound, consistent with common practice and economic efficiency, and necessary for budget discipline. Second, we can improve both the budget account structure and the budget process by attributing all the costs of acquiring and holding capital to the particular programs that use the assets. Doing so would facilitate the management of capital resources and support the objectives of the Government Performance and Results Act (GPRA). Such a recognition by users of the period-by-period cost of capital parallels recent budgetary innovations abroad.

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Document Details

Document Type
Technical Report
Publication Date
Apr 24, 1998
Accession Number
ADA399539

Entities

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  • June E. O'neill

Organizations

  • Congressional Budget Office

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  • Biomedical
  • Human Systems

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  • Accounting
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  • Capital Investments
  • Cost Analysis
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  • National Governments
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  • United States Government

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