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A Summary of Selected CBO Reports on Cash and Accrual Budgeting: Working Paper 2019-09

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  • Megan Carroll
  • David Torregrosa

Abstract

Federal retirement programs and some federal insurance programs have long-term effects on the budget. But the federal budget process typically uses cash-based accounting measures that cover a 10-year period, which may be too short to accurately report those programs’ net budgetary effects over the long term. In contrast, using accrual accounting for such programs would accelerate the recognition of long-term costs and would display the expected costs of new commitments when they were incurred and thus were most controllable. However, such estimates are less transparent and

Suggested Citation

  • Megan Carroll & David Torregrosa, 2019. "A Summary of Selected CBO Reports on Cash and Accrual Budgeting: Working Paper 2019-09," Working Papers 55672, Congressional Budget Office.
    • Handle: RePEc:cbo:wpaper:55672
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    File URL: https://www.cbo.gov/system/files/2019-10/55672-CBO-cash-accrual-working-paper.pdf
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    References listed on IDEAS

    as
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    3. Congressional Budget Office, 2016. "Options to Improve the Financial Condition of the Pension Benefit Guaranty Corporation’s Multiemployer Program," Reports 51536, Congressional Budget Office.
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    6. Congressional Budget Office, 2017. "Options for Changing the Retirement System for Federal Civilian Workers," Reports 53003, Congressional Budget Office.
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    9. OECD & Ken Warren, 2015. "Time to look again at accrual budgeting," OECD Journal on Budgeting, OECD Publishing, vol. 14(3), pages 1-17.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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