The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Budget Projections

  • Douglas Holtz-Eakin
Reference work entry


This article surveys different approaches to the construction of government budget projections, illustrated with procedures from the United States Office of Management and Budget (OMB) and Congressional Budget Office (CBO). It sets out the several distinct steps that are required in budget projections, from macroeconomic forecasting to comparing projections with outcomes and analysing the sources of deviations.


Aggregate demand Budget projections Budget window Business cycles Forecasting Intertemporal incentives Scoring Uncertainty 

JEL Classifications

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  1. CBO (Congressional Budget Office). 2002. CBO testimony: Federal budget estimating. Statement of Dan L. Crippen, Director, before the Committee on the Budget, U.S. House of Representatives, 2 May. Online. Available at Accessed 14 Feb 2007.
  2. Joint Committee on Taxation. 2006. Exploring issues in the development of macroeconomic models for use in tax policy analysis (JCX-19–06), 16 June. Online. Available at Accessed 14 Feb 2007.

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Douglas Holtz-Eakin
    • 1
  1. 1.