February 13, 2004
MEMORANDUM FOR THE HEADS OF DEPARTMENTS AND AGENCIES
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
2004 through the end of January 2005.
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.
||Joshua B. Bolten
||2004 Discount Rates for OMB Circular No. A-94