The Lok Sabha on Friday passed the Supplementary Demands for Grants for 2012-13 and the relevant Appropriation Bills. This authorises the Centre to withdraw 30,804 crore rupees from the Consolidated Fund of India.

Replying to the two-day discussion, Finance Minister P. Chidambaram said, he aims at fiscal consolidation to bring the national economy back on the rails. He said, the government is taking firm steps to control inflation. The country has a comfortable stock of 682 lakh tonnes of wheat and rice at present.

Elaborating on the outgo, the Finance Minister said, out of 30,804 crore rupees, 28,500 crore rupees will go towards oil subsidy and 2,000 crore rupees on Air India's turnaround plan. Mr. Chidambaram said with the additional grant, the total funds earmarked for oil subsidy would be around 72,260 crore rupees in the current fiscal. The Finance Minister termed inflation as a challenge which is worrying the government. But he noted that inflation has shown a downward trend of late.

If it continues like this, there would be reason for comfort. The Finance Minister said fiscal consolidation is essential to avoid down-grading by various rating agencies. He said the government's road map of fiscal consolidation will restrict inflation to 5.3 per cent of the GDP in the current year which will eventually go down to 3 per cent by the end of the 12th plan period. Mr. Chidambaram was confident that the measures taken by the government will enable him to present a better picture of the economy in his next budget.

Later, the Lok Sabha passed the Supplementary demands for grants amidst a walk out by the BJP and Trinamool Congress members.