Parliament asks Govt to rein in price rise

After three days of intense debate in both the houses, Parliament today asked the government to take "further effective" steps to contain inflation to protect the common-man.

A day after Lok Sabha passed a resolution seeking government action to rein in the spiralling prices, the Rajya Sabha today approved a similar motion.

"This House takes a considered view of inflation and urges the government to take further effective action to contain its (inflation) impact on common man," an identical resolution said.

The government and the Opposition agreed on the consensus resolution after a deadlock in Parliament stalled the proceedings in the first week of the Monsoon session, beginning July 26, over the price rise issue.

Before approval of the resolution, Opposition parties took the government to task, stating that it was insensitive to the suffering of the common people whose real income was getting eroded by inflation.

Despite some moderation, food inflation is hovering at 9.53 per cent and the general wholesale price above 10 per cent.

Listing various measures taken by the government to contain inflation, Finance Minister Pranab Mukherjee said the price rise was a result of fiscal expansion which followed Rs 1,86,000 crore of stimulus package given in 2009.

Appealing for support from all political parties for the proposed Goods and Services Tax, the Finance Minister said inflation must be contained with cooperation from states.