The Hindu Business Line : Outcome budget: Export target of $104 b for 2006-07

The Outcome Budget (2006-07) of the Department of Commerce has set an indicative export target of $104 billion for the final year of the Tenth Plan, keeping in view the goals set by the Foreign Trade Policy to attain $150-billion export by 2008-09.

In the Outcome Budget report, tabled in Parliament by the Union Commerce & Industry Minister, Mr Kamal Nath, it has been conceded that it is not possible to quantify the "deliverables of the major programmes/ schemes being implemented by the Department in the form of direct and physical outputs." It further noted that the final outcome of all the activities undertaken by the Department is the increase in the country's exports and imports trade.

Measured on this parameter, it said the performance of the various programmes/ schemes has been encouraging, as the exports have logged a growth rate of more than 20 per cent during the last three years.

It said the actual exports during 2004-05 were $80.54 billion, i.e., 7.4 per cent higher than the target of $75 billion fixed for the year.

Considering the performance of exports during 2005-06 (April to January) the current year's target of $92 billion is likely to be surpassed and as a consequence even the indicative target of $104 billion tentatively fixed for the next fiscal is also most likely to be revised upward during the course of the year, the report said optimistically.

Simplifying norms

Referring to the much-need procedural simplification, electronic data interchange (EDI) initiatives and reduction of transaction costs, it said the implementation of the various measures by the department have led to, among others, processing time of an application coming down from an average of 30-45 days to six hours, applicant can monitor the status of its application on line and application processing fee brought down by 50 per cent.

Price stabilisation

On the Price Stabilisation Fund (PSF) Scheme for select commodities such as coffee, rubber, tea and tobacco from April 2003, the report said the PSF scheme initially envisaged setting up of a corpus fund of Rs 500 crore, consisting of Rs 482.88 crore contribution by the Union Government and Rs 17.12 crore contribution from growers. Till date, it said the Centre had contributed Rs 432.88 crore and the growers have contributed Rs 2.24 crore.

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