FOR THE HEADS OF DEPARTMENTS AND AGENCIES
E. Daniels, Jr.
Discount Rates for OMB Circular No. A-94
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.
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 2002 through the end of January 2003.
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.