New Delhi: Government today (Jun 17, 2004) hinted at policies to promote growth, investment and employment generation in the Budget to be presented on July eight.

"Rapid growth is crucial for human development. It is imperative to create policy environment for promoting growth and investment," Finance Secretary D C Gupta said addressing a World Bank seminar on 'Millenium Development Goals in India' today.

He said economic growth does not benefit the poor unless it generates employment avenues, which is essential to meet the MDG of halving the number of people living below poverty level by 2015.

Citing India's experience during the Eighth Five Year Plan period, Gupta said, "The sharpest decline in poverty rate was during 1992-97, when GDP growth was the highest."

Stressing on a "balanced approach" for growth with equitable distribution of resources, he said that regional disparities need to be removed through rapid economic development in poorer States like Bihar, Uttar Pradesh, Madhya Pradesh, Orissa and Rajasthan.

"The country faces the challenge of reducing poverty in these areas," he said, adding delivery of public services have to be improved and last mile projects completed.

Calling for optimum utilisation of resources, he said that India can achieve MDGs well before 2015 but there is a need to innovate and optimise whatever resources are allocated.

He said the foreign aid flows must increase as it amounts to a meager 0.5 per cent of GDP and the rest is garnered from domestic sources.