LTA incurs $1b in bus contract deficit

For the 2018/2019 financial year, the Land Transport Authority collected $912 million in operating income from public bus operations, with the figure comprising bus fare revenue of $834 million and other income of $78 million. But expenditure came up
For the 2018/2019 financial year, the Land Transport Authority collected $912 million in operating income from public bus operations, with the figure comprising bus fare revenue of $834 million and other income of $78 million. But expenditure came up to $1.925 billion, resulting in a shortfall of some $1 billion.ST PHOTO: GIN TAY

Public bus operations have incurred "losses" amounting to $1 billion, as fares fall far below the cost of government contracts awarded to transport firms such as SBS Transit and SMRT.

The Land Transport Authority (LTA), which awards these contracts, posted a deficit of $1.013 billion for the 2018/2019 financial year, according to its latest annual report.

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A version of this article appeared in the print edition of The Straits Times on October 15, 2019, with the headline 'LTA incurs $1b in bus contract deficit'. Print Edition | Subscribe