Sunday, September 27, 2009

Federal Government Spends Stimulus Money Faster Than Expected

"The government has already paid out around $48 billion of the $49 billion that was expected to go to states and localities in the fiscal year that ends on Sept. 30, putting the rate of spending slightly ahead of schedule, according to the report, which was issued by the Government Accountability Office. The vast majority of the money spent so far — 84 percent — was provided in the form of extra Medicaid and education money to keep states afloat during the downturn; about 4 percent of it was for highway construction."

"When direct federal spending to contractors and other parties, as well as tax relief, are included in the tally, more than $150 billion worth of stimulus money has been pumped into the economy so far, the White House stated. Vice President Joseph R. Biden Jr. said in a statement that the report had confirmed that the stimulus “is working to jump-start critical infrastructure projects, cushion the impact of record state budget deficits and provide new job opportunities for hard-hit communities.”

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