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.
KeywordsAggregate demand Budget projections Budget window Business cycles Forecasting Intertemporal incentives Scoring Uncertainty
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