MEMORANDUM
FOR THE HEADS OF DEPARTMENTS AND AGENCIES
FROM:
Jacob
J. Lew
Director
SUBJECT:
2000
Discount Rates for OMB Circular No. A-94
On October
29, 1992, OMB issued a revision to OMB Circular No. A-94, "Guidelines
and Discount Rates for Benefit-Cost Analysis of Federal Programs."
The revision established new discount rate guidelines for use in
benefit-cost and other types of economic analysis.
The revised
Circular specifies certain discount rates that will be updated annually
when the interest rate and inflation assumptions in the budget are
changed. These discount rates are found in Appendix C of the revised
Circular. The attachment to this memorandum is an update of Appendix C.
It provides discount rates that will be in effect for the period
February 2000 through January 2001.
The rates
presented in Appendix C do not apply to regulatory analysis or benefit-cost
analysis of public investment. They are to be used for lease-purchase
and cost-effectiveness analysis, as specified in the Circular.