[Federal Register Volume 80, Number 19 (Thursday, January 29, 2015)]
[Notices]
[Pages 4948-4949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-01616]
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OFFICE OF MANAGEMENT AND BUDGET
Discount Rates for Cost-Effectiveness Analysis of Federal
Programs
AGENCY: Office of Management and Budget.
ACTION: Revisions to Appendix C of OMB Circular A-94.
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SUMMARY: The Office of Management and Budget revised Circular A-94 in
1992. The revised Circular specified certain discount rates to be
updated annually when the interest rate and inflation assumptions used
to prepare the Budget of the United States Government were changed.
These discount rates are found in Appendix C of the revised Circular.
The updated discount rates are shown below. The discount rates in
Appendix C are to be used for cost-effectiveness analysis, including
lease-purchase analysis, as specified in the revised Circular. They do
not apply to regulatory analysis.
DATES: The revised discount rates will be in effect through December
2015.
FOR FURTHER INFORMATION CONTACT: Gideon Lukens, Office of Economic
Policy, Office of Management and Budget, (202) 395-3316.
Aviva Aron-Dine,
Associate Director for Economic Policy, Office of Management and
Budget.
Attachment
APPENDIX C
(Revised December 2014)
DISCOUNT RATES FOR COST-EFFECTIVENESS, LEASE PURCHASE, AND RELATED
ANALYSES
Effective Dates. This appendix is updated annually. This version
of the appendix is valid for calendar year 2015. A copy of the
updated appendix can be obtained in electronic form through the OMB
home page at http://www.whitehouse.gov/omb/circulars_a094/a94_appx-c/. The text of the Circular is found at http://www.whitehouse.gov/omb/circulars_a094/, and a table of past years' rates is located at
http://www.whitehouse.gov/sites/default/files/omb/assets/a94/dischist.pdf. Updates of the appendix are also available upon
request from OMB's Office of Economic Policy (202-395-3316).
Nominal Discount Rates. A forecast of nominal or market interest
rates for calendar year 2015 based on the economic assumptions for
the 2016 Budget is presented below. These nominal rates are to be
used for discounting nominal flows, which are often encountered in
lease-purchase analysis.
Nominal Interest Rates on Treasury Notes and Bonds of Specified Maturities
[In percent]
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3-Year 5-Year 7-Year 10-Year 20-Year 30-Year
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1.7 2.2 2.5 2.8 3.1 3.4
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Real Discount Rates. A forecast of real interest rates from
which the inflation premium has been removed and based on the
economic assumptions from the 2016 Budget is presented below. These
real rates are to be used for discounting constant-dollar flows, as
is often required in cost-effectiveness analysis.
Real Interest Rates on Treasury Notes and Bonds of Specified Maturities
[In percent]
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3-Year 5-Year 7-Year 10-Year 20-Year 30-Year
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0.1 0.4 0.7 0.9 1.2 1.4
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[[Page 4949]]
Analyses of programs with terms different from those presented
above may use a linear interpolation. For example, a four-year
project can be evaluated with a rate equal to the average of the
three-year and five-year rates. Programs with durations longer than
30 years may use the 30-year interest rate.
[FR Doc. 2015-01616 Filed 1-28-15; 8:45 am]
BILLING CODE 3110-01-P