Karnataka govt hikes state-run bus fares by 15%

The revision in fares followed demands by the Karnataka State Road Transport Employees Joint Act Committee for the government to clear around `8,010 crore in dues. The amount owed to the corporations includes `2,000 crore due to the implementation of Shakti scheme — the free bus travel scheme for women — salary arrears worth `1,785 crore, provident fund dues of `2,900 crore and dearness allowance dues of `325 crore.

The employees’ committee announced a state-wide shutdown on January 31 before agreeing to withdraw the call.

While the fares of KSRTC, NWRTC and KKRTC were last revised in 2020, that of BMTC was revised in 2014.

In a briefing following a Cabinet meeting Thursday, Law and Parliamentary Affairs Minister H K Patil said that since January 10, 2015, diesel expenses of the corporations have increased from `9.16 crore per day to `13.21 crore per day. “Labour expenses have gone up from `12.85 crore per day to `18.36 crore. The total increase in operational cost is `9.56 crore per day. Therefore, the fare revision was essential,” he said.

To clear some payments related to salary arrears, provident fund and dearness allowance dues, the government will give a loan guarantee to raise `2,000 crore from various financial bodies, Patil said.

The minister argued that despite the price hike, Karnataka’s fares will be lower than those of neighbouring states such as Andhra Pradesh, Maharashtra and Telangana. The hike, along with the loans raised, will resolve issues raised by the labour unions, he said, adding that any remaining demands will be addressed by Chief Minister Siddaramaiah in the next budget.

On pending dues due to Shakti scheme, he said that `5,015 crore had been allocated for the current financial year in the budget and `417 crore was paid each month to corporations.

Defending the guarantee schemes, Patil said that when implementing welfare programmes, some expenses will have to be borne by others. “The guarantees have provided benefits to many people. Along with it, development should also be on our agenda. We should also have the financial prudence to adjust any deficits,” he said.

BJP leaders criticised the hike. Leader of Opposition R Ashok said in a post on X that the Congress government has been extorting the common man in one form or another since it came to power. “Siddaramaiah is sucking the blood of Kannadigas by hiking one price or the other everyday,” he said.

BJP state chief B Y Vijayendra said that the state-run transport corporations were facing losses as Siddaramaiah had failed to provide funds for the Shakti scheme. “The 15 per cent hike in fares by the Congress government is unscientific and against people’s interests,” he said.