Pursuant to a legislative requirement, GAO reviewed whether the Office of Management and Budget's (OMB) and Congressional Budget Office's (CBO) budget sequestration reports complied with the Budget Enforcement Act.

GAO found that: (1) the OMB and CBO reports complied with the act; (2) the inflation adjustment to the fiscal year 1994 discretionary spending limits was incomplete, since it did not include personnel costs; (3) the spending limit for discretionary budget authority was $2.3 billion lower than it should have been; and (4) the OMB decision not to adjust the 1993 discretionary spending limits resulted in spending limits that understated the full amount of spending allowed by $132 million.