Calculation method and supporting measures on the subsidy of urban public transport enterprises in China

An effective way to solve problems of urban transport is the development of public transport and the implementation of the bus priority strategy. Public welfare of the public transportation determines that its development often needs to rely on government financial subsidies. In recent years, the Chinese government has increased financial subsidies for public transport companies. But there are many problems on the subsidy mechanism. The reasonable calculations of policy-related losses in urban public transport enterprises and the improvement on subsidy mechanism have become the primary problems on the reasonable implementation of financial subsidies. In this paper, based on the analysis about the problems on subsidy mechanism of urban public transport enterprises in China, the calculation method of subsidy based on the fare and a new idea on subsidy and supporting measures to further improve the subsidy mechanism of urban public transport enterprises are introduced. This provides the basis for the establishment of subsidy mechanism for policy-related losses. © 2013 WIT Press.