This volume is one of a series of reports on the state of the budget and the economy that the Congressional Budget Office (CBO) issues each year for the Congressional Committees on the Budget. Chapters: the outlook for 2002, and for 2003 through 2012; recent changes to the budget outlook; CBO's baseline compared with OMB's current-services estimates; the long-term outlook; recent economic developments; CBO's economic forecast for 2002 and 2003; and the outlook beyond 2003. Appendices: the Federal sector of the Nat. Income and Product Accounts; CBO's economic projections for 2002 through 2012; and major contributors to the revenue and spending projections. Extensive charts, tables and graphs.