Budget 2022-23: Aviation sector dismayed on ATF front

ATF makes up 25 percent to 40 percent of an airline's operating cost, reported livemint.

The aviation industry was expecting fiscal aid, reduction in excise duty, and policie that help in capacity expansion.

To ease international travelling procedures, e-passports will become reality in this fiscal year. They are meant to smoothen passage of travellers globally through imigration posts.

On the multimodal connectivity front, Finance Minister Nirmala Sitharaman mentioned the PM Gati Shakti National Master Plan, which focuses on bringing 16 ministries, including Railways and Roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects.

It will also accelerate the movement of people, goods and services from one mode of transport to another.

With a motive to create employment and revive the economy reeling under the effects of covid19 pandemic, the Centre proliferated its public spending aim from 5.5 lakh crore to 7.5 lakh crore.

Sitharaman said, "The virtuous cycle of investment requires public investment to crowd-in private investment. At this stage, private investments seem to require that support to rise to their potential and to the needs of the economy. Public investment must continue to take the lead and pump-prime the private investment and demand in 2022-23."

Whole Time Director and CEO of  IndiGo, Ronojoy Dutta, said, "Budget 2023 appears to be growth oriented by increase in capital outlay of INR 7.5 Lacs crores, fiscal deficit caped at 6.4 percent and efforts are being made to reduce compliance burdens and improve ease of doing business.

"We expect the budget would enable India to achieve a growth estimate of 9.2 percent. We welcome the new incentives of issuing e-passport and introduction of digital currency."

"The government’s relentless focus on national transportation infrastructure development with the PM Gatti Shakti plan will strengthen the much-needed multimodal connectivity and facilitate seamless movement of cargo, while reducing logistics costs," he said.

"Having said that, we were expecting tax concessions to the Aviation industry in the forms of cut in ATF excise duty and allocation of concessional finance to airlines to help us come out of the pandemic," he added.