Thiruvananthapuram: The Kerala State Road Transport Corporation (KSRTC) is concerned as the state budget does not mention the ₹1000 crore it needs to pay pensions and salaries. Every month, ₹80 crore is required just for pension payments, and without financial aid, the situation is becoming increasingly difficult.

Although the government has not officially taken over KSRTC’s pension liability, it has been covering payments using the financial assistance provided to the corporation. Typically, ₹1000 crore is allocated and disbursed in monthly instalments. If that falls short, additional funds are granted as loans. This year, however, there is no mention of such support in the budget, leaving KSRTC in a state of uncertainty.

The government has allocated ₹107 crore for purchasing new buses and ₹50.7 crore for renovation and e-governance, but these funds are strictly designated for their respective purposes and cannot be used for pension or salary payments.

Adding to the challenge, the Finance Department has objected to using funds meant for renovation to cover salaries and pensions. Officials argue that a public sector undertaking like KSRTC cannot function indefinitely on government assistance alone and must find ways to increase its revenue. They have suggested that KSRTC introduce more buses to generate additional income.

Despite these challenges, KSRTC remains hopeful. It expects additional funds to be allocated during discussions on the budget. Another option is a government loan, similar to previous years. In the past, the government has sanctioned loans of up to ₹1200 crore. In 2023-24, KSRTC received ₹2065.56 crore, while in 2021-22, it was allocated ₹2037 crore. Since 2016, the government has provided a total of ₹11,787.8 crore to KSRTC. 

However, despite this substantial financial support, KSRTC is still struggling to break free from its debt crisis. The Finance Department views the continued dependency on government aid as a serious issue and believes the corporation must find a long-term solution to its financial troubles.