Office of Management and Budget versus Congressional Budget Office

Officeof Management and Budget versus Congressional Budget Office

TheOffice of Management and Budget’s (OMB) primary function is to helpthe United States’ president manage the preparation process of thefederal budget. Also, the agency manages the implementation of thebudgets of the branches of the executive agencies. Some of the rolesof the OMB include determination of the efficiency of the procedures,programs and policies, and then compares them with competingfinancial requirements in among the agencies. The comparison iscrucial for establishing financial priorities among the agencies. Itsother purpose is ensuring that the proposed legislations, testimony,reports and rules are compliant with the budget of the president aswell as administration regulations (Mandel, 2009). Moreover, theoffice supervises and synchronizes the regulatory, information,procurement and financial management policies of the administration.In all the sectors that OMB is involved, its objective is to createimproved performance measures and coordination strategies,administrative regulation as well as to decrease uncalled for burdensto the taxpayers (Joyce, 2011).

Conversely,the Congressional Budget Office (CBO) assists Congress in thepreparation of the budget plan. It attains the objective throughgiving Congress estimated costs that are essential for the Congressto make plans that are within the limits of the available funds. Inaddition, it analyzes the effect of the federal policies as well asgives the Congress studies to help it allocate adequate funds totarget programs. As such, the agency ensures that Congress givesadequate funds to individual programs (Overview of the budget, 2015).Similarly, it evaluates the influence of existing federal policies inthe allocation and implementation of the assigned budgets. Finally,it may conduct or gather essential studies that could aid Congressevaluate the economic and budgetary targets that need to beconsidered in the allocation of funds.

TheOMB and CBO agencies are related in that they both help the executivebranch in the budget preparation process. As such, they gatherinformation about the demands that the government needs to fund, andthen estimate their costs. The analysis helps the budgetary committeein the division of the available fund. Second, both agencies areinvolved in the evaluation and prioritization of the financialdemands of other government branches (Overview of the budget, 2015).As such, they provide data that helps to rank government projectsthat should be given first consideration on the budget (Joyce, 2011). Third, both institutions are actively involved in the implementationof the government policies the administration develops. Both agenciesaccomplish the goal through analyzing procedures, policies andprograms to identify the most urgent needs that the government shouldfirst allocate funds in the present budget. Lastly, they monitor theusage of the allocated funds to ensure that it is used within thestipulated limits. Besides, the agencies ensure that the allocatedfunds are adequate for the allocated function (Overview of thebudget, 2015).

Onthe contrary, the CBO and OMB have substantial differences. One ofthe contrasts is that CBO provides budget formulation advice to theCongress while OMB helps the federal government with the relevantknowledge required to make a precise budget. Joyce (2011) assertsthat manages and brings together the regulatory policies, theprocurement administration, and regulatory and informationalresources. Nevertheless, the obligation of the agency is restrictedto the budget advice therefore, it cannot give the recommendation ongovernment policies. In contrast, OMB is a partisan member that cangive proposals for correcting budget policies. As such, it caninfluence the adjustment of federal policy that is already in place.CBO policy was founded in 1921 as The Bureau of the Budget while CBOwas enacted in 1974 by President Richard Nixon (Mandel, 2009).


Joyce,P.G. (2011). TheCongressional Budget Office: Honestnumbers, power, and policymaking.

Mandel,S. (2009). Office of Management and Budget. NationalPress Foundation.Retrieved from

Overviewof the budget(2015). White House Press, OMB Circular, No. A –1., 1-10. Retrievedfrom