New Delhi: Focusing on rapid development of civil aviation infrastructure in the country, the government on Monday increased the budget allocation to the civil aviation ministry to almost Rs12,165 crore.
The Budget proposal to abolish the fringe benefit tax (FBT) will help airlines save substantial expenses as they were paying this tax for expenses on hotel accommodation of their cabin and cockpit crew.
Compared with the 2009-10 allocation of Rs12,165 crore, the budget allocation to the ministry for 2008-09 was Rs10,031 crore and revised allocation Rs7,490.06 crore. The total budgetary support this year stands at Rs190 crore.
Of this, the Airports Authority of India (AAI) has been allocated Rs 99.15 crore to modernise major metro airports at Kolkata and Chennai and another 35 non-metro airports.
While Rs20 crore of the AAI’s budgetary allocation has been earmarked for development of airports in the Northeast, the remaining Rs79.15 crore will be spent for the same purpose in crucial places like Jammu, Srinagar as also Agatti (Lakshadweep) and Puducherry.
The directorate general of civil aviation has been given a budgetary support of Rs50 crore, while the bureau of civil aviation security was allocated Rs14 crore to pursue their plan schemes, the Budget document said.