News

IMF chief supports Biden s massive US stimulus plan

February 6, 2021 02:21 AM


Twitter Share Facebook Share WhatsApp Share

IMF chief Kristalina Georgieva on Friday endorsed US President Joe Biden's proposed $1.9 trillion economic stimulus plan to deal with the pain caused by the Covid-19 pandemic.

"The US does have fiscal space to take additional relief and support measures," she told reporters.

And it is "appropriate" to use that firepower "given the exceptional uncertainties, and most importantly, given the fact that there is still a lot of pain for households and businesses."

Far from considering the package excessive, Georgieva expressed support for many of the proposal's elements including funding for vaccines, testing, food assistance, as well as tax credits for low-income workers.

"The fund has been a big proponent of using even more Earned Income Tax Credit (and) refundable childcare credit," she said during an event with reporters.

Biden on Friday pledged to "act fast" to push the legislation through Congress, even as Republicans have balked at the high price tag for the plan that enjoys broad popular support.

Democrats hold a narrow majority in the Senate, so they could approve the measure without Republican support.

Republicans also have opposed providing aid to struggling state and local governments, but Georgieva said conditions make that aid necessary.

"There is clearly a need to support states and local governments... so they can provide the services that are expected from them," she said.

A US recovery would have benefits for the global economy, and spending by Washington on areas such as education serves as an important "signal" to the rest of the world, she said.

Georgieva agreed on the need to "be watchful of risks" such as rising government debt, but "we have the best possible secretary of the Treasury for this potential risk to financial stability," she said, referring to Janet Yellen.



Most Read

  1. Maryam Nawaz can wear uniform! Maryam Nawaz can wear uniform!
  2. Madiha Rizvi ties the knot again Madiha Rizvi ties the knot again
  3. Zara Noor Abbas inspired by Rani Mukerji Zara Noor Abbas inspired by Rani Mukerji
  4. Here is all about Madiha Rizvi’s second husband Here is all about Madiha Rizvi’s second husband
  5. Two patients die, injuries of 12 others multiplied after roof collapse at Gujrat hospital Two patients die, injuries of 12 others multiplied after roof collapse at Gujrat hospital
  6. Humayun Saeed and Saboor Aly under fire for close interaction in public Humayun Saeed and Saboor Aly under fire for close interaction in public

Opinion

  1. Legacy of Indian military subjugation in Kashmir
    Legacy of Indian military subjugation in Kashmir

    By Dr Ghulam Nabi Fai

  2. Islamabad becoming the hub of international diplomacy
    Islamabad becoming the hub of international diplomacy

    By Salim Bokhari

  3. Insights into the Pakistan Stock Exchange's Recent Record High Triumph
    Insights into the Pakistan Stock Exchange's Recent Record High Triumph

    By Zulfiqar Ali Mir

  4. IMEC to sabotage CPEC
    IMEC to sabotage CPEC

    By Dr Asif Channer

  5. 1947 TO FORM 47
    1947 TO FORM 47

    By Dr Asif Channer

  6. Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....
    Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....

    By Ali Ramay