Blaming the surge in inflation rate to the continuing rise in global commodity and foodgrain prices, Finance Minister P Chidambaram on Monday said the government will make every effort to contain price rise and ensure that it did not affect the poor.
"We will make every effort to contain prices, especially for the weaker section," he said while winding up discussions on Budget in Rajya Sabha.
Stating that fair prices to farmers would mean higher prices for consumers, he said the interests of the poor will be protected though it may result in higher subsidy outgo.
Pointing out that the government has already cut excise and customs duties in the Budget to contain prices, the minister said, "we will take fiscal steps...we will urge Reserve Bank of India to take monetary steps. Its dharma is price stability."
He further added that the government would try to maintain growth momentum while initiating measures to keep prices under control. "I am confident that RBI will keep growth in mind, while taking monetary steps," he said.
The Rajya Sabha later passed the vote on account and supplementary demands for grants by voice vote enabling the government to meet necessary expenditure pending passage of the Budget by Parliament.
With the Upper House approving the vote on account, Parliament on Monday completed the first stage of budgetary exercise for 2008-09. The vote on account was approved by Lok Sabha last week.
Admitting the inflation is again on the rise, Chidambaram said it was on account of relentless increase in the crude oil, commodity and foodgrain prices in the global market. As per the latest figure, the wholesale price-based inflation rate touched 5.11 per cent for the week ended March 1.
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