WASHINGTON, Jan 18: US President George W. Bush called on Friday for Congress to act quickly on a stimulus plan worth around $140 billion to revive an economy that some fear is on the brink of recession.

Bush’s announcement came amid a growing consensus on the need to enact a plan to help stave off a downturn with a stimulus programme based on tax rebates and breaks for businesses.

“Our economy has a solid foundation, but there are also areas of real concern,” Bush said in a White House announcement aimed at providing the outline for a stimulus plan.

“After careful consideration and after discussions with members of Congress I’ve concluded that additional action is needed to keep our economy growing and creating jobs.” He added, “Congress and the administration need to work to enact an economic growth package as soon as possible.”

Bush said the package “must be big enough to make a difference in an economy as large and dynamic as ours, which means it should be about one per cent of GDP.”

Treasury Secretary Henry Paulson said that on that basis, the package should be “in the neighbourhood” of $140 to $150 billion.

“The package should be robust enough to make an impact this year, and should be temporary so that it doesn’t impact our long-term fiscal position,” Paulson said.

Some lawmakers and officials are pressing for tax-rebate checks of at least $300 per taxpayer, with some lawmakers seeking as much as $800 per person or $1,600 per household, in addition to various business tax breaks.

With recession fears rising fast, Bush and Republican lawmakers appeared willing to make a big concession to Democrats by accepting legislation that did not include an extension of Bush’s tax cuts, which the White House has been seeking.

Democrats, meanwhile, signalled willingness to suspend their own budget rules and accept a tax break without first figuring out how to pay for it.—AFP