Union Budget 2023 Boosts Civil Aviation Ministry with Allocation of Rs 3,113.36 Crore

The Union Budget presented by Finance Minister Nirmala Sitharaman on Wednesday has allocated Rs 3,113.36 crore for the Civil Aviation Ministry, which is a sharp reduction compared to the estimated Rs 10,667 crore for the 2022-23 financial year. This amount consists of Rs 3,026.70 crore from revenue and Rs 86.66 crore from the capital and is mainly due to the lower funds allocated to Air India Asset Holding Ltd (AIAHL). AIAHL is a special-purpose vehicle formed by the government that holds assets of the national carrier Air India. In January last year, the government’s disinvestment process resulted in the Tata Group taking over the control of Air India.

In her Budget speech, Finance Minister Nirmala Sitharaman announced that Rs 1,244.07 crore has been allocated for regional air connectivity in the upcoming fiscal year starting April 1. This amount is higher than the Rs 7,200 crore initially allocated for AIAHL under the ‘central sector schemes/projects for 2022-23, which was later revised to Rs 9,259.91 crore. Additionally, Rs 1,114.49 crore has been allocated for AIAHL under the public sector undertakings segment, and Rs 73.74 crore and Rs 309 crore have been allocated for the Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS), respectively. Moreover, the Airports Authority of India (AAI) is to raise Rs 3,448.21 crore by way of Internal and Extra Budgetary Resources (IEBR). To further improve regional air connectivity, the Finance Minister also mentioned that 50 additional airports, heliports, water aerodromes, and advanced landing grounds will be revived.