BMTC faces severe financial crunch due to widening revenue-expenditure gap

Team Udayavani, Dec 13, 2024, 6:46 PM IST

Bengaluru: The Bengaluru Metropolitan Transport Corporation (BMTC) is grappling with a severe financial crunch due to rising operational costs and inadequate government support, according to a report by the Comptroller and Auditor General (CAG).

The BMTC provides subsidized bus passes to students, differently-abled individuals, and freedom fighters, among others. As per the agreement, the state government is required to bear 50% of the financial burden. However, a sum of Rs 345 crore for the years 2017-22 remains unpaid by the government.

In an effort to reduce private vehicle congestion, BMTC has kept travel fares affordable, resulting in a potential revenue loss of Rs 650 crore. To bridge this revenue-expenditure gap, BMTC had sought financial assistance from the government, but the proposal was rejected, leading to mounting financial losses, the report stated.

The revenue-expenditure gap has widened significantly over the years. Operational revenue dropped from Rs 1,764 crore in 2017-18 to Rs 922.49 crore in 2021-22, while expenses reduced marginally from Rs 2,357 crore to Rs 2,053 crore during the same period, as highlighted in the CAG report.

The number of daily commuters also declined drastically, from 44.37 lakh in 2017-18 to 15.97 lakh in 2021-22, primarily due to the COVID-19 pandemic. Though ridership has now recovered to about 40 lakh, the city’s rising population underscores the need for further enhancements to BMTC services.