Service tax exemptions narrowed and abatement rate reduced, altering eligibility for educational, restaurant, transport and construction services.
Amendments narrow multiple service tax exemptions and reduce the construction abatement. Key changes: educational auxiliary services and renting by specified educational institutes lose exemption; cinematograph film copyright exemption applies only to films exhibited in cinema halls or theatres; restaurant exemption limited to non air conditioned establishments; transportation exemptions for rail and vessel harmonized with GTA provisions, withdrawing exemption for petroleum, postal mails and household effects while preserving GTA exemptions for specified goods; parking and government aircraft maintenance exemptions withdrawn; charitable activities definition narrowed. Construction abatement is reduced effective March 1, 2013.

Power to arrest expanded: officers authorized to detain persons for specified service tax offences including non-payment of collected service tax.
Section 91 adds a power to arrest within the service tax framework, permitting the Commissioner of Central Excise to authorize officers not below Superintendent to arrest persons for specified offences, with particular emphasis on non-payment of collected service tax.

Financial assistance for industrial development: central grant under IIUS supports handloom cluster establishment, with instalment released.
Under the NMP framework States control industrial location while NIMZs are supported; the Union has no plans to set up industries in Bihar but DIPP provided financial assistance under Plan schemes. Specifically, under IIUS a Handloom Cluster at Bhagalpur was sanctioned on 01.10.2010 with a project cost of Rs. 20.82 crore and central grant of Rs. 15.69 crore, and Rs. 1.56 crore was released as the first part of the first instalment on 16.12.2011.

Options paper on industrial development along the Eastern Dedicated Freight Corridor advances assessment of development scenarios.
The Ministry of Urban Development has initiated preparation of an options paper to assess possibilities for development, including industrial development, along the Eastern Dedicated Freight Corridor, carried out in collaboration with an international development partner as reported in a written parliamentary reply.

Mandatory solar power requirement for Special Economic Zones promotes on-site renewable energy deployment and compliance.
Mandatory use of solar power in Special Economic Zones is established through issued energy conservation guidelines requiring SEZ developers and occupiers to adopt solar energy solutions and implement on site renewable installations; details and operational provisions are available on the SEZ portal and were communicated by the Minister.

Appointment of Inquiry Committee into corporate corruption reports directs investigation and a three-month reporting timeline
Appointment of a one-person inquiry committee to investigate media reports alleging corruption by Walmart, instructed to examine the reported allegations and submit findings within a three-month period from the resolution's issuance, as communicated by the Minister of State for Commerce and Industry.

Government to Business single-window streamlines licensing and compliance through an online portal nationwide for businesses.
The eBiz portal establishes a Government to Business single-window providing a 24x7 online system that supplies customized lists of required licenses, permits and regulations, enables access to information and forms, accepts application submissions and online payments, and routes applications and fees to relevant departments to manage licences, permits, registrations, approvals, clearances and periodic filings across the business life-cycle.

Fiscal consolidation essential to secure growth, price stability and manageable current account financing through tax base widening and subsidy reform.
The Economic Survey 2012-13 reports improved Central Government fiscal outcomes for 2012-13, links prior weakness to slower growth, higher global crude prices and subdued financial markets, and notes reforms following Kelkar Committee recommendations. It stresses that adherence to fiscal consolidation, via widening the tax base, privatizing expenditure and addressing petroleum subsidies including diesel price reforms, is critical to securing growth, price stability and sustainable current account financing.

Disinvestment target set and partially met through offers for sale, affecting central public sector enterprise ownership.
The Government set and pursued a programme of disinvestment in Central Public Sector Enterprises, achieving part of the stated target through receipts that included an offer for sale in a major energy CPSE; a further target was established for the following fiscal year. The release accompanies this fiscal objective with CPSE statistics-260 enterprises under control, 225 operational and 35 under construction-and sectoral financial performance showing divergent profit and turnover trends to contextualise the disinvestment effort.

Manufacturing policy reform expands investment zones and liberalises foreign investment rules to attract industry investment.
Government initiatives aim to stimulate manufacturing through the National Manufacturing Policy promoting industrial clusters and National Investment and Manufacturing Zones, complemented by Delhi Mumbai Industrial Corridor master planning, progressive liberalisation of foreign direct investment policies to widen sectoral entry, and establishment of a single-window investor facilitation joint venture together with an e-Biz portal to provide end-to-end government-to-business services.

Industrial growth outlook signals modest positive expansion as weak investment, infrastructure and energy constraints dampen performance.
The Index of Industrial Production shows mining contraction from falls in natural gas and crude output and a manufacturing recovery led by consumer durables; capital goods remained weak. Gross Capital Formation averaged positive growth earlier but turned negative in 2008-09 and 2011-12, largely due to manufacturing declines. Weak investment, infrastructure and energy constraints, decelerating credit and fragile global demand have moderated industrial and corporate sales growth, and seasonally adjusted measures indicate modest positive industrial growth for the current year.

Government policy initiatives to revive industrial investment and address infrastructure and energy constraints, supporting modest output recovery.
Government policy initiatives aim to improve business sentiment and support a modest recovery in industrial output, while the industrial sector remains vulnerable to infrastructure and energy constraints, weak export demand, and a fragile investment climate. Key indicators show a marked contraction in manufacturing gross capital formation, reduced foreign direct investment inflows into industry and infrastructure, declining investment intentions signalled by Industrial Entrepreneur Memoranda, and a slowdown in year on year bank credit growth despite a marginal recent pickup.

Health budget increase and gender budgeting rise lead to expanded maternal services and scheme convergence efforts.
Government increased the health plan outlay and funded supply side strengthening under the National Rural Health Mission-adding health personnel, constructing sub centres and primary and community health centres, and financing nursing and midwifery schools-while expanding labeled maternity benefits and institutional delivery schemes. The Survey records an increase in gender budgeting's share of the total budget and identifies overlapping beneficiaries across maternal schemes, recommending exercise to identify, converge or eliminate duplicative programs; it also notes approved ICDS restructuring and partial releases for the Sabla programme.

Social safety nets expanded through increased social spending and targeted delivery including Aadhaar and direct benefit transfers.
India strengthened social safety nets by increasing social sector expenditure and deploying targeted delivery mechanisms: pilots of Direct Benefit Transfer ran in Jharkhand, Tripura and Maharashtra while large scale Aadhaar enrollment progressed. Progress is reported across housing, rural roads, potable water and mid day meals, and flagship schemes such as MNREGA, NRLM/Aajeevika, SJSRY and RSBY show releases, coverage and implementation outputs supporting inclusive development amid global slowdown.

Reprioritisation of expenditure: shift funding from non Plan to Plan to meet the Twelfth Plan outlay.
Reprioritisation of central government expenditure from non-Plan to Plan heads is essential to meet the Twelfth Plan outlay; non-Plan spending is larger and has grown faster year on year through April-December, and the Plan outlay comprises Gross Budgetary Support for Plan activities plus internal and extra budgetary resources of central public enterprises.

Subsidy control: raising diesel and LPG prices to align with global markets to contain fiscal outgo.
Controlling expenditure on subsidies is a fiscal priority, requiring domestic diesel and LPG prices to be aligned with international markets; measures already include phased diesel price increases, allowance for incremental price adjustments by oil marketing companies, and a cap on subsidised gas cylinders. The Survey promotes better targeting and reduced leakages through the Direct Benefit Transfer scheme, calibrates fertilizer pricing by fixing per-tonne subsidies for non-nitrogenous fertilizers, and accords priority to food subsidy via the National Food Security Act despite potential higher subsidy outgo.

Fiscal consolidation is central to restoring growth and price stability, supported by tax base widening and subsidy reforms.
Fiscal consolidation in 2012-13 shows marked improvement for the Central Government and continued State progress; staying on the consolidation path is critical for higher growth, lower inflation and easing current account deficit financing. The Survey promotes widening the tax base and privatisation of expenditure as key measures for medium term deficit reduction, highlights petroleum subsidies as a major fiscal risk, and notes diesel price reforms and expenditure reprioritisation as strengthening the credibility of the consolidation roadmap.

Disinvestment target set to raise funds through CPSE stake sales; prior year relied heavily on OFS in ONGC.
Government set a disinvestment target of Rs 40,000 crore for 2011-12 and realised Rs 13,854 crore, which included an offer for sale (OFS) in ONGC amounting to Rs 12,749.50 crore; the Budget 2012-13 disinvestment target is set at Rs 30,000 crore. The release also notes CPSE sector composition (260 CPSEs; 225 operating, 35 under construction) and highlights sectoral profit and turnover trends in mining, manufacturing, and electricity.

Manufacturing policy promotes zone-based industry growth, corridor cities and eased foreign investment rules to attract investment.
The Government adopted the National Manufacturing Policy promoting National Investment and Manufacturing Zones and cluster development along an industrial corridor, while liberalising FDI across key sectors and establishing a single-window investor facilitator and the e-Biz portal to provide lifecycle G2B services and improve ease of doing business.

Urban infrastructure financing under JNNURM advances city service projects and enables ULB credit assessments for project funding.
JNNURM was extended to support completion of urban infrastructure projects in 65 mission cities that prepared City Development Plans for services like water, sanitation, drainage and transport; most of the Additional Central Assistance allocation has been committed and funds released for sanctioned projects. The mission assesses and rates Urban Local Bodies to improve creditworthiness and enable project financing with financial institutions, and it facilitates urban transport initiatives including Bus Rapid Transit Systems and procurement of ITS enabled buses.