The interim budget for the fiscal year 2024-25 has suggested a substantial reduction in budgetary allocations for the Ministry of Civil Aviation. The proposed allocation stands at INR 2,300 crore, a significant drop from the budget estimate of INR 3,113.36 crore in the previous fiscal year 2023-24.
Breaking down the allocation, INR 1,158.79 crore has been specifically designated for AI Asset Holdings Ltd, allocated for servicing loans transferred to the special purpose vehicle (SPV) as part of the financial restructuring of Air India.
This marks a decrease from the 2023-24 allocation of INR 1,144.49 crore and a revised estimate of INR 713.92 crore.
Furthermore, a noteworthy adjustment has been made in the provision for the medical benefits of retired Air India employees. The budget allocates INR 85 crore for this purpose, a reduction from the previous year’s allocation of INR 130 crore but an increase from the revised estimate of INR 51 crore.
Under the Internal and Extra Budgetary Resources (IEBR), the Airports Authority of India has been permitted to raise INR 3,448.14 crore, a slight decrease from the previous allocation of INR 3,448.21 crore but higher than the revised estimate of INR 3,427.70 crore.
In a bid to bolster a specific scheme, the government has earmarked INR 502 crore in the budget.
Although this marks a decrease from the budget estimate of INR 1,244.07 crore in 2023-24, it remains higher than the revised estimate of INR 850 crore.
Jaideep Mirchandani, Chairman Sky One, an aviation solutions company headquartered in Sharjah said that the 2024-25 budget paints an optimistic picture for India’s aviation and tourism sectors.
The finance minister underscored the importance of promoting tourism in India by announcing a framework for rating iconic tourist centres based on the quality of facilities and services. She added that long-term interest-rate loans will be provided to states for comprehensive development and branding of these centres, fostering domestic tourism and attracting foreign visitors. Industry leaders and stakeholders welcomed the government’s initiatives and shared their reactions on the interim budget with ETTravelWorld. Read more…
