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IMF welcomes steps taken by US Congress to avoid fiscal cliff

But says more remains to be done to put the US public finances back on sustainable path

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Press Trust of India Washington
Last Updated : Jan 29 2013 | 2:34 PM IST

Welcoming the measures taken by the US Congress to avoid the country hitting fiscal cliff, which would have had an adverse impact on global economy, the International Monetary Fund (IMF) has said more remains to be done to put the US public finances back on sustainable path.

"We welcome the action by the US Congress to avoid sudden tax increases and spending cuts, including through an extension of unemployment benefits during 2013. In the absence of Congressional action the economic recovery would have been derailed," IMF spokesman Gerry Rice said on Wednesday.

"However, more remains to be done to put US public finances back on a sustainable path without harming the still fragile recovery," he said.

"Specifically, a comprehensive plan that ensures both higher revenues and containment of entitlement spending over the medium term should be approved as soon as possible," he said.

"In addition, it is crucial to raise the debt ceiling expeditiously and remove remaining uncertainties about the spending sequester and expiring appropriation bills," Rice said in a statement.

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First Published: Jan 03 2013 | 10:24 AM IST

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