The recent union budget has sparked concerns among sports federations regarding fiscal sustainability. With a significant portion of their funding allocated towards infrastructure development, many federations are struggling to manage their finances. The lack of subsidies and incentives has further exacerbated the issue.
For instance, the Indian Olympic Association has been facing financial difficulties, with a deficit of over 10 million rupees. The situation is similar for other federations, with the Table Tennis Federation of India facing a debt of 5 million rupees. To address this issue, the government needs to reconsider its taxation policies and provide more subsidies to sports federations.
A possible solution could be to introduce a GST exemption for sports equipment and infrastructure development. This would not only help reduce the financial burden on federations but also promote sports development in the country. With the sports industry facing significant fiscal challenges, it is essential for the government to take proactive measures to ensure the long-term sustainability of sports federations.