The Union government has announced a uniform Integrated Goods and Services Tax (IGST) rate of five per cent on all aircraft and aircraft engine parts. This regulation, set to streamline procurement processes for domestic and international airlines, marks a significant step towards reducing operational costs.

The budgetary allocation for the Civil Aviation Ministry has been reduced to Rs 2,357.14 crore for the current fiscal. 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 civil aviation ministry was R2,922.12 crore.