BENGALURU
Public welfare schemes designed to provide free mobility to citizens often place a heavy financial burden on state-run utilities. Balancing social welfare mandates with operational sustainability remains a critical challenge for governments, particularly when mounting arrears threaten the day-to-day liquidity of essential public service providers.
Karnataka’s four major road transport corporations are facing severe financial strain as pending dues from the state government under the flagship Shakti Yojana have climbed to an astronomical Rs 5,650.95 crore. The staggering fiscal gap was revealed through official data presented by Transport Minister Bairati Suresh in a written reply during the recently concluded session of the Legislative Council.
Launched on June 11, 2023, to provide free bus travel for women across the state, the Shakti Yojana has experienced an exponential surge in ridership. Cumulative data indicates that between the scheme’s inception and July 2026, commuters have completed an astounding 797.16 free journeys. Passenger volumes have climbed steadily year after year, jumping from 183.06 million trips in the 2023-24 financial year to 244.65 million in 2024-25, and surging further to 275.70 million trips in 2025-26. During just the first four months of the 2026-27 fiscal year leading up to July, an additional 93.75 million free trips were logged.
To sustain this massive public demand, the four transport corporations incurred a total expenditure of Rs 20,955.96 crore up to July 2026. However, government disbursements have lagged behind actual operational costs. While the administration has released Rs 15,305.01 crore thus far, the remaining deficit of over Rs 5,650 crore has left the transport corporations grappling with tight cash flows.
When the Transport Department formally requested the Finance Department to expedite the release of the pending arrears, fiscal authorities responded that budgetary allocations for the Shakti Yojana have already been factored in alongside various other forms of state financial assistance. According to ministerial disclosures, the government has funneled a total of Rs 18,459.37 crore over the past three years into the corporations through multiple channels covering student bus passes, loan repayments, infrastructure construction, fleet modernization, viability gap funding, tax exemptions, and clearance of salary and diesel arrears.
Despite this extensive auxiliary support, the massive backlog of unpaid scheme reimbursements has raised red flags among transit experts and union representatives. As free travel continues to break previous records, ensuring timely fiscal compensation is vital to maintaining fleet efficiency, funding regular vehicle maintenance, and preventing operational gridlock across the state’s public transport network.