The Centre has allocated Rs 2,102.87 crore to the Ministry of Civil Aviation (MoCA) for 2026-27, a modest rise from the revised estimate of Rs 2,055.49 crore in 2025-26, but sharply lower than the Rs 2,600.63 crore spent in 2024-25, according to proposed Budget announcement by Finance Minister Nirmala Sitharaman on Sunday.The latest allocation comprises Rs 2,057.87 crore under the revenue head and Rs 45 crore as capital expenditure. In comparison, capital spending stood at Rs 97.12 crore in 2024-25 and Rs 41.01 crore in the revised estimates for 2025-26, indicating that while capital outlay has inched up year-on-year, it remains less than half of what was spent two years ago.Spending under economic services continues to dominate the ministry’s budget. For 2026-27, Rs 1,972.90 crore has been earmarked for economic services, up slightly from Rs 1,921.02 crore in 2025–26 (RE), but down significantly from Rs 2,600.63 crore in 2024-25. Of this, civil aviation alone accounts for Rs 1,856.90 crore, compared to Rs 1,815.01 crore in the previous year and Rs 2,436.33 crore in 2024-25.The Regional Connectivity Scheme (RCS) has been allocated Rs 550 crore for 2026-27. This is a clear increase from Rs 434.50 crore in the revised estimates for 2025–26, but still well short of the Rs 789.31 crore actually spent in 2024-25. The scheme, which focuses on reviving unserved and underserved airstrips and strengthening connectivity in the North-Eastern region, remains the single largest programme expenditure of the ministry.Regulatory and safety institutions have seen targeted increases. The Directorate General of Civil Aviation (DGCA) has been allocated Rs 342 crore in 2026-27, up from Rs 330 crore in both the Budget and revised estimates for 2025-26, and significantly higher than the Rs 275.21 crore spent in 2024-25. The Bureau of Civil Aviation Security (BCAS) has received Rs 114 crore, compared to Rs 88 crore in 2025-26 (RE) and Rs 84.44 crore in 2024-25, reflecting higher spending on security equipment, IT systems and international cooperation.Provision for servicing legacy liabilities of Air India Asset Holding Limited (SPV) has been reduced to Rs 758.39 crore for 2026-27. This marks a steady decline from Rs 1,025.51 crore in 2025-26 and Rs 977.18 crore in 2024-25, continuing the tapering of government support following the airline’s disinvestment.Capital outlay on civil aviation has been pegged at Rs 40 crore for 2026-27, slightly higher than Rs 38.01 crore in the revised estimates for 2025-26, but less than half of the Rs 85.36 crore provided in 2024-25. Investment through internal and extra-budgetary resources for the Airports Authority of India (AAI) is projected at Rs 4,699.92 crore in 2026-27, broadly stable compared to Rs 4,688.03 crore in 2025-26, after dipping to Rs 4,193.83 crore in that year’s revised estimates.