Union Budget 2024: Civil aviation allocation reduced to Rs 2,357 crore

The budgetary allocation for the civil aviation ministry has been reduced to Rs 2,357.14 crore for the current fiscal ending next March. Meanwhile, the regional air connectivity scheme is set to receive Rs 502 crore during the same period. In the revised budgetary allocation for 2023-24, the amount for the ministry was Rs 2,922.12 crore.

Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in Parliament on Tuesday. According to the documents, the ministry will receive an allocation of Rs 2,357.14 crore. The budget for the regional air connectivity scheme has been reduced to Rs 502 crore from Rs 850 crore in the revised allocation for 2023-24. This amount will be used for the revival of 22 airports, the commencement of 124 RCS routes, and Viability Gap Funding for North East Connectivity.

A new scheme has been formulated to improve air connectivity and aviation infrastructure in the northeast region, according to a document. The Production Linked Incentive (PLI) scheme for drones and drone components will receive a higher allocation of Rs 57 crore this fiscal, compared to Rs 33 crore in the 2023-24 revised estimates.

For 2024-25, the allocations for the Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS) have been reduced to Rs 302.64 crore and Rs 89 crore, respectively. 

In the Budget, Rs 57.14 crore has been allocated for the Hotel Corporation of India Ltd to meet its statutory and other obligations under the ministry. An amount of Rs 85 crore has been allocated this fiscal for providing medical benefits to retired employees of Air India, which was sold to Tata Group in 2022. In 2023-24, the amount stood at Rs 51 crore.