Union Finance Minister P Chidambaram yesterday urged regional parties to provide the government with much-needed support for its ambitious as well as controversial reform initiatives.

Urging the lawmakers for support, Mr. Chidambaram said in Parliament that the government's failure in fiscal consolidation could lead to the country's sovereign rating's decline to junk status.

He also warned that any further downgrading of the country's sovereign would bring terrible, unaffordable consequences.

Speaking on the topic, he said, "If we do not succeed in fiscal consolidation there is a risk of downgrade to junk status. That will be a terrible consequence. We can't afford that."

Prime Minister Mannohan Singh's minority government is in dire need of the support of regional parties to get the land acquisition law approved in Parliament.

The Congress-led UPA government also needs lawmakers' support for its economic reforms measures, such as reduction in subsidies and entry of foreign companies in various sectors, as these harsh measures are distorting the government's image ahead of general elections in 2014.