No Budget Bias Against Long-Term Investments

3. Ensure that there is no budget bias against long-term investments.

OMB, in consultation with the Congress and the CFO Council, should
develop a plan for budgeting that recognizes the special nature and
long-term benefits of investments in fixed assets through a separate
capital budget, operating budget, and cash budget. The plan should be
completed by June 1994. The discipline of the cash outlay caps in the
Budget Enforcement Act must be maintained, capital budgeting should not
be a license to borrow to purchase fixed assets, and capital should be
defined narrowly as discussed in this paper.