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FY23 Budget: Aviation sector fears it will be much ado about nothing, as usual

In the last two budgets, a large part of the allocations for the Civil Aviation Ministry went towards servicing the interest of the asset holding company in which Air India’s debts are parked and to acquire VVIP aircraft.

January 28, 2022 / 07:43 AM IST

Year after year, stakeholders in the aviation sector draw up a wishlist they hope will be taken up in the Union Budget. But year after year it remains just that – a wish list.

The last few years in particular have seen little or no benefits for the aviation sector in the Budget. In fact, in the 2021-22 Budget, even as the aviation sector was bleeding financially because of the Covid-19 pandemic, the budgetary allocations for the sector were slashed by 22 per cent.

In the previous year, the budgetary allocations for aviation had inched up a mere 2.62 per cent.

Nripendra Singh, Research Director, Aerospace & Defense Practice, Frost & Sullivan, says the government prioritised other sectors and initiatives during the pandemic for relief packages. “As an infrastructure-intensive sector, it requires a calculative approach to strategise initiatives," he adds.