New Delhi: Government will carry out more liberalisation and financial and tax reforms to step up investments, Finance Minister P Chidambaram said yesterday (Dec 2, 2004).

Centre will also strive to improve financial management and fiscal consolidation in States so that investments in social sectors are not impeded, Chidambaram told visiting UK Secretary of State for International Development Hilary Benn in New Delhi.

The Minister reaffirmed UPA (United Progressive Alliance) Government's commitment of ensuring that tangible benefits of development reach villages, an official release said.

Chidambaram drew attention to the irony of developing nations financing a large part of trade deficit of USA.

He expressed concern over the impediments in world trade talks due to reluctance of developed nations to provide greater market access to goods and services from developing nations apart from the resistance of rolling back farm subsidies.

While India has done it all it was expected to do in order to make further progress in world trade talks, he said failure of developed nations to honour their obligations has jeopardised the trade talks.

The two ministers also exchanged views on economic cooperation and attaining the Millennium Development Goals.

Chidambaram exchanged views on the need for combating HIV/AIDS along with other dreaded diseases to improve the quality of life of common people.

He supported UK's proposal of setting up an International Finance Facility and conveyed India's willingness to positively consider the various options to operationalise the facility.