February 9, 1999
MEMORANDUM FOR THE
HEADS OF DEPARTMENTS AND AGENCIES
||1999 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 1999 through January 2000.
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.
Circular No. A-94, Appendix C