Washington 'on track' with stimulus cash

The Obama administration on Tuesday said it was "on track" to spend 70 per cent of last year's economic stimulus funds by the end of September, as it prepares to ramp up payments to thousands of infrastructure projects across the US.

Senior officials, speaking on the eve of the first anniversary of the signing of the legislation, sought to defend the benefits of the stimulus, claiming it helped the economy emerge from a deep recession. US officials said about 57 per cent of the stimulus cash - or $453bn - was accounted for in tax breaks, direct payments to local governments and individuals, and infrastructure. But a portion of that money - particularly funds for infrastructure - has not been spent and the administration has been under pressure to deliver the money as rapidly as possible. On Tuesday, officials said the goal of spending 70 per cent of the funds by the end of September was intact.