Thiruvananthapuram: The Kerala State Road Transport Corporation (KSRTC) is facing a worsening financial crisis, as the state budget does not include the ₹1000 crore required to cover pension and salary payments. With a monthly pension requirement of ₹80 crore, KSRTC is struggling to meet its financial obligations without government intervention.
While the government has not officially assumed responsibility for KSRTC’s pension payments, it has historically provided financial aid to help cover these expenses. Typically, a fund of ₹1000 crore is allocated and released in monthly installments, with additional support provided as loans when necessary. However, this year’s budget does not mention any such financial assistance, putting KSRTC’s financial stability in question.
Despite the crisis, the state government has earmarked ₹107 crore for purchasing new buses and ₹50.7 crore for renovation and e-governance. However, these funds are designated for specific purposes and cannot be used for salaries or pensions. The Finance Department has also opposed any diversion of these funds for operational expenses, emphasizing that KSRTC must find sustainable revenue sources instead of relying solely on government assistance.
One proposed solution is increasing the number of operational buses to generate more income. Officials believe that expanding KSRTC’s fleet and improving services could help boost revenue and reduce financial dependency. However, given the ongoing debt burden, executing such measures remains challenging.
KSRTC remains optimistic that additional funds might be allocated through budget discussions or a government loan, as has happened in previous years. In the past, the state government has provided loans amounting to ₹1200 crore, with KSRTC receiving ₹2065.56 crore in 2023-24 and ₹2037 crore in 2021-22. Since 2016, a total of ₹11,787.8 crore has been extended to KSRTC to keep it afloat.
Despite these substantial financial injections, KSRTC continues to struggle with its growing debt. The Finance Department has raised concerns over KSRTC’s long-term viability and believes the corporation must implement sustainable financial strategies instead of relying on continuous government bailouts. As the situation remains uncertain, KSRTC’s ability to overcome its financial troubles depends on securing additional support and finding innovative ways to enhance revenue generation.
