Karnataka’s state-run buses face ₹5,209 crore losses amid government support

Karnataka’s state-run transport corporations have incurred losses of ₹5,209 crore over the past five years, with nearly 40% of buses operating at a loss, according to Transport Minister Ramalinga Reddy. The financial strain highlights the challenges in sustaining public transport without government backing.

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Between 2019-20 and 2023-24, the Karnataka State Road Transport Corporation (KSRTC) recorded a deficit of ₹1,500.34 crore, while the Bengaluru Metropolitan Transport Corporation (BMTC) faced ₹1,544.62 crore in losses. The North West Karnataka Road Transport Corporation (NWKRTC) and Kalyana Karnataka Road Transport Corporation (KKRTC) reported losses of ₹1,386.58 crore and ₹777.64 crore, respectively.

Reddy defended the losses in the Legislative Council, stating that public transport systems globally rely on government subsidies. He pointed out that while 40% of buses operated at a loss, another 30% functioned without generating profit, leaving only 30% of long-route buses as profitable.

To manage financial pressures, the government has sanctioned a ₹2,000-crore loan to state transport corporations, alongside fare hikes. Rising fuel costs, salary revisions, and operational expenses have contributed to the mounting losses.

Additionally, under the Shakthi scheme, which provides free bus rides for women, the government has committed ₹9,978 crore in subsidies, with ₹7,796 crore already disbursed to state transport corporations. The scheme has further influenced the financial landscape of public transportation in Karnataka.