The Congressional Budget Office (CBO) is an independent agency within the federal government of the United States. Established in 1975, its primary function is to provide nonpartisan and objective economic and budgetary analysis to Congress. The CBO assists lawmakers in making informed decisions regarding budget, tax, and spending policies. It is regarded as a vital resource in the legislative process, helping Congress understand the potential economic and financial implications of proposed legislation.
The CBO conducts various analyses and provides valuable information to policymakers. It produces regular reports, cost estimates, and assessments of the potential impacts of legislative proposals. These analyses often cover a wide range of areas, including economic growth, tax revenues, federal spending, healthcare programs, and more. The agency's analysis aims to provide a comprehensive understanding of the effects of proposed policies on the overall economy, specific sectors, and individuals or households.
The CBO's independence plays a crucial role in its effectiveness. Being an impartial entity, it provides unbiased and objective information to assist Congress in evaluating the potential consequences of proposed legislation. This ensures that lawmakers have access to accurate data and analysis, enabling them to make informed choices that align with the nation's economic and fiscal stability.
In summary, the Congressional Budget Office (CBO) is an independent agency that serves as a source of objective economic and budgetary analysis for Congress. Its main goal is to provide Congress with information and insights necessary to make informed decisions regarding fiscal and economic policies, thereby facilitating responsible governance and ensuring the well-being of the nation's economy.