The Finance Minister Pranab Mukherjee has said that budget proposals are aimed at fostering domestic demand driven growth, fiscal consolidation and moderation of inflation. Replying to the debate in the Lok Sabha today, Mr. Mukherjee said, the budget was prepared in the context of uncertainties in international oil prices and external factors due to the global economic slowdown. He also said, the impact of the global economic crisis has to be addressed collectively under the prevailing political compulsions. Justifying his budgetary proposals, Mr Mukherjee underlined the need for more investments to boost agriculture, infrastructure and the rural sector. On black money, he said the government will make concerted efforts to bring back black money from abroad and check its generation. Mr Mukherjee also made it clear that the government does not intend to harass the genuine tax payers.

On food security, the Finance Minister said, because of the several measures taken by the government, for the first time, the country has registered a record production of one hundred million tonnes of rice. He said, the demand driven wage earning flagship scheme MGNREGA has ensured minimum wage payment in the rural areas.

The Finance minister said, he will consider the representations received on excise duty on jewellery. Mr. Mukherjee said, a special package to silk weavers in consultation with the States is also under consideration. He expressed concern over the quantum of gold imports and its impact on foreign exchange. He said, last year alone the imports were worth 46 billion dollars, which was next only to petroleum products.
After the reply, the House passed the relevant appropriation bills on vote on account, supplementary demands for 2011-12 and excess demands for grants completing the first phase of the three-stage budgetary process for 2012-13. The discussion on budget on Rajya Sabha remained inconclusive.