MEMORANDUM FOR THE HEADS OF DEPARTMENTS AND AGENCIES
FROM: Jacob J. Lew
SUBJECT: 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
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.