Free buses · Karnataka and the world
Nobody asks a flyover to make a profit. Why do we ask a bus?
Karnataka gives away roughly ₹7,200 crore of bus tickets a year. One side calls it a freebie. The other calls it an investment. Evidence from Tallinn to Bengaluru says something more useful: when free buses pay off, and the one thing that decides it.
*Average value of a Shakti trip, June 2023 to July 2026: ₹20,956 crore ÷ 797.16 crore trips. Live count runs at 75.68 lakh free trips a day, the January 2026 average.
The ticket that says ₹0
Since June 11, 2023, women in Karnataka have ridden the state's non-luxury buses for free. The conductor still prints a ticket. The fare line says zero.
The ticket still has a price. The state pays it to the bus corporation later. Averaged over three years, that works out to about ₹26 a trip.
By July 2026, women had taken 797 crore of these trips. In 2025-26 alone it was 275.7 crore. At about ₹26 each, one year of free rides is worth roughly ₹7,200 crore.
That is the number everyone argues about. Waste? Vote-buying? A bargain? To answer it, start with something nobody argues about: the road outside.
Nothing on the road pays for itself
You don't pay to drive over a flyover. You don't pay per signal, per streetlight, per pothole filled. Roads are paid for upfront, out of taxes, and nobody calls a flyover loss-making.
When a road is asked to earn its keep, the numbers get uncomfortable. Bengaluru's civic body worked out that its planned 18 km Hebbal to Silk Board tunnel would be viable only if cars paid an average toll of ₹16 per km. That's about ₹288 a trip.
The bus is the one part of the street we expect to cover its costs at the ticket counter. And Indian buses came remarkably close.
How much of the bus bill riders paid at the fare box
Share of running costs covered by ticket revenue
BMTC figure derived from the CAG's audit, which found operating costs were 133.6% of operating revenue in 2017-18. Others from city, national audit and press figures listed under Sources.
Look at the gap. Tallinn, Dunkirk and Luxembourg were already paying 70% to 92% of the bus bill from taxes. Going free cost them a sliver. Bengaluru's riders were paying for roughly three-quarters of their own buses.
So going free here is a much bigger bet. It is also why the result here could look nothing like Europe's.
Five places tried it first
Free buses are not an Indian invention. Here is what happened in five places that scrapped fares, by the evidence they produced.
Tallinn, Estonia
- Fares covered
- About 30% of costs. The city already paid the other 70%.
- Riders
- Up 14% in the first year, by the city's count. A Swedish study put the effect of free fares alone far lower, near 1.2%.
- Cars
- Average car trips got longer. When Estonia later made rural county buses free, the national auditor found car journeys had not fallen.
- Paid by
- More than 10,000 people registered as residents in the first year to get the free pass. Their income tax, about €10 million, covered most of the €12 million cost.
- Today
- Tallinn's coalition agreed in 2024 to keep it free for residents.
Paid for itself on paper. Didn't empty the roads.
Luxembourg
- Fares covered
- About €41 million of a €500 million running bill. Roughly 8%.
- Riders
- Public transport's share of commutes was 17.6% in both the 2011 and 2021 censuses.
- Cars
- Car commuting slipped from 72.3% to 69.3%. Walking and cycling took the difference.
- Paid by
- The national budget, which was already paying most of the cost.
- Today
- Still free for everyone, including visitors.
Cheap to do. Changed little. The fare was never what kept people off the bus.
Dunkirk, France
- Fares covered
- About 10% of costs.
- Riders
- Up 85% in the first year. City hall later reported a 165% rise.
- Cars
- Some drivers switched. France's national auditor says most of the rise was extra trips, not drivers leaving their cars.
- Paid by
- A transport tax on employers. The city also redesigned the network and grew the fleet from 100 to 140 buses.
- Today
- Still free.
Worked because the buses got better at the same time.
Montpellier, France
- Fares covered
- About €39 million a year in ticket sales, 90% of it from residents.
- Riders
- 420,000 residents now hold the free pass. About 86,000 paid for a pass before.
- Cars
- Driving's share of weekday trips in the metro area fell from 70% in 2019 to 51% in 2025, alongside new tram and cycle routes.
- Paid by
- An employer transport tax. The regional audit office put the cost at about €42 million a year.
- Today
- Still free. Trams are often packed, because riders grew faster than the fleet.
The biggest drop in driving of the five. It came with a billion-euro transit and cycling plan.
Kansas City, USA
- Fares covered
- About 8% of the transit agency's revenue.
- Riders
- Up about 25%, and the gain held for years, according to a published study.
- Cars
- Not measured.
- Paid by
- Largely federal COVID relief money. The yearly cost grew to about $15 million against $8.8 million planned.
- Today
- Fares returned on June 1, 2026, at $2 a ride.
Riders came. The money didn't.
In September 2025, France's national auditor reviewed fare-free transport across 46 networks serving 2.8 million people. Its finding: going free helps small, under-used networks at limited cost. In big networks it is expensive and mostly moves walkers and cyclists onto buses. Its advice was to cut fares by income, not for everyone.
Three lessons from abroad
- Free fares always bring riders.Every city above saw ridership jump, from 14% in Tallinn's first year to 85% in Dunkirk's.
- Free fares rarely empty roads on their own.Where driving fell, buses or trams got better at the same time. Where only the price changed, the cars stayed.
- Free fares are cheapest where fares were already small.Luxembourg gave up about 8% of its bus bill. That's why it could go free nationwide without much debate.
Europe mostly tried free buses as climate policy, with mixed results. India tried them as something else.
India flips all three conditions. The fare was large next to what riders earn. Tamil Nadu estimates its free rides save women ₹888 a month on average. A Chennai survey of 3,000 women found 90% of them earned under ₹20,000 a month.
Most of these riders were never going to drive. So the Indian question was never whether drivers would switch. It was who could now get to work.
India copied it across party lines
In India, free bus travel for women spread through election manifestos. And it spread through almost every kind of government.
- Oct 2019DelhiPink tickets on DTC and cluster buses.AAP
- Apr 2021PunjabFree travel on state-run buses.Congress
- May 2021Tamil NaduVidiyal Payanam on ordinary buses. Women went from 40% to 65% of riders.DMK
- Jun 2023KarnatakaShakti on non-luxury state buses.Congress
- Dec 2023TelanganaMahalakshmi. ₹7,400 crore paid to the bus corporation by September 2025.Congress
- Mar 2025DelhiNew government keeps it, limits it to Delhi residents, moves it to Pink Saheli smart cards.BJP
- Aug 2025Andhra PradeshStree Shakti. 24 lakh women a day; women went from 40% to 62% of riders.TDP-led NDA
- Jun 2026West BengalFree travel on all state-run buses. ₹550 crore set aside in the first budget.BJP
- Oct 2026Tamil NaduNew government widens it to express and deluxe buses as Vettri Payanam. About ₹6,000 crore a year.TVK
Delhi and Tamil Nadu both changed governments after launching their schemes. Both kept them. Tamil Nadu's new government made it bigger.
Parties argue loudly about freebies. On this one, they keep voting the same way. So the useful question is whether a scheme is built well.
What ₹7,200 crore a year buys
In smaller towns, a separate study of about 250 women found 10.5% entered paid work for the first time after Shakti. The share travelling beyond their own taluk for work rose from 14% to 24%. The bus widened the map of jobs they could reach.
Take the free ride away, and who keeps working?
Bengaluru women who commute to work on Shakti, asked if they would keep the job if they had to pay
Source: Impact evaluation of Karnataka's five guarantees, led by Tara Krishnaswamy with Lokniti-CSDS, 2025.
One correction before the math. Most of the ₹7,200 crore is not new money in the economy. It's a transfer. A woman who rode the bus before June 2023 now keeps her fare. That's like a small pay rise, paid by the state. Real help, but not growth.
Growth comes from trips that didn't exist before: the job across town, the clinic in the next taluk, the college that was one fare too far. That's where any payback has to come from.
These are surveys. They record what women say changed in their lives. That is strong evidence, but it doesn't prove the bus caused every change.
Does it pay for itself? Do the math
Here is the honest version of the claim. The state's accounts will never get ₹7,200 crore back. The economy might. Set your own assumptions.
The payback calculator
19% of lower-income women statewide reported new or better work. ₹6,000 blends new jobs with smaller raises.
At ₹6,000 a month, earnings match the bill once 26.3% of riders gain.
For scale: in April to June 2024, women doing casual work earned about ₹299 a day in rural India and ₹364 in cities (PLFS). Over 25 working days, that's ₹7,500 to ₹9,100 a month.
How we built this: yearly bill = 275.7 crore free trips in 2025-26 × ₹26.29 average ticket value. Riders = 75.68 lakh free trips a day ÷ 2, assuming most trips are round trips. It counts wages only and leaves out clinic visits, school trips, time saved and auto fares avoided. New earnings land in households, not the treasury. The state gets back a slice through taxes on what those households spend.
Try a few settings and a pattern appears. The scheme roughly earns back its cost if one rider in four or five earns a modest extra wage because of it. The statewide survey puts Karnataka a little short of that line. Bengaluru's rate is well past it.
That's a real case. It rests on one thing the sliders quietly assume: that the bus shows up.
Six seats on the same bus
Every number above lands differently depending on where you sit. Pick a seat.
Up to ₹500 a week, kept
Two in three women in the statewide survey said they save up to ₹500 a week. One in four saves ₹500 to ₹1,000. In Bengaluru, the free ride is often what makes a job worth taking: fewer than half would keep working if they had to pay again.
A 15% fare hike, and a fuller bus
He still buys a ticket, and it costs more. Karnataka raised bus fares 15% in January 2025. In 2026 the corporations sought another revision, citing diesel prices and unpaid Shakti dues. His bus is fuller too: riders are up about 36%, buses about 9%.
₹5,651 crore waiting to be paid
The four corporations run the trips first and bill the state later. By July 2026 they had carried ₹20,956 crore of free rides and been paid ₹15,305 crore. Reports say the gap has delayed payments for diesel, spare parts and salaries.
₹15,000 a year, in Andhra
Every woman who switches to a free bus is a fare an auto or a private bus lost. Andhra Pradesh chose to compensate: it pays ₹15,000 a year to more than 2.9 lakh auto and cab drivers, in a scheme launched because of its free bus rides. In Karnataka, private bus owners talked of a strike within days of Shakti's launch.
1.2% of the budget
Shakti's budget line for 2026-27 is ₹5,300 crore, about 1.2% of Karnataka's ₹4.48 lakh crore budget. All five guarantees together take about 12% of the state's spending. The RBI has warned that subsidies such as free power and transport can squeeze the money states have for infrastructure, schools and hospitals.
62% of BMTC riders are now women
Women went from 40% to 62% of BMTC's riders. A different city now rides the bus. What's missing is evidence on traffic: we found no Indian study that measures whether free buses took cars or two-wheelers off the road.
So, is it a freebie?
In June 2022, an RBI bulletin article tried to draw a line. On one side, spending that brings economic returns: the public distribution system, employment guarantee, education, health. On the other, things often regarded as freebies. Free public transport sat on that list, next to free electricity, free water and loan waivers.
The RBI's line is about returns. So run free buses through a returns test. Four questions:
- Does it unlock work, school or care?YesSurveys in Karnataka and Tamil Nadu point the same way: more jobs reached, more clinic visits, money kept.
- Does it help people who never use it?PartlyEmployers get a wider pool of workers. Effects on traffic and air haven't been measured in India.
- Is the bill budgeted in full and paid on time?Not yetThe budget line is ₹5,300 crore. A year of rides is worth closer to ₹7,200 crore. By July 2026, ₹5,651 crore of dues had built up.
- Does it protect the thing it depends on?Not yetRiders are up about 36%. Buses are up about 9%.
Free buses pass the hardest question. They fail the two that are easiest to fix.
Keep these four questions. They work on any scheme you hear called a freebie.
The bus has to come
Every city that made free fares work did one more thing. Dunkirk added 40 buses. Montpellier spent on trams and bike lanes. Kansas City couldn't find the money, and the fares came back.
Karnataka added buses too. Just not as fast as it added riders.
Growth since Shakti began
Karnataka's four state bus corporations, before Shakti = 100
Source: KSRTC figures released in July 2025. Scale runs from 0 to 140.
Then there's the money. The corporations carry the cost first and wait for the state to pay them back.
Shakti's bill to the bus corporations, June 2023 to July 2026
₹20,956 crore of free rides carried
Put those together and you can see how a good scheme wears itself down. A free ticket for a bus that never comes is worth nothing. A crowded bus pushes away the man who pays full fare. A corporation waiting on dues buys fewer buses.
BMTC expects about 4,500 electric buses in phases. Whether they arrive faster than the riders is the number to watch.
The question worth asking
Free buses don't pay for themselves in the state's accounts. Neither does a flyover, a streetlight or a tunnel. For scale: about two and a half years of Shakti costs the same as the 16.7 km Hebbal to Silk Board tunnel road, estimated at ₹17,698 crore.
The better question is what the money moves. In Karnataka, it moves women to work, at a price the economy can plausibly earn back. The risk isn't the free ticket. It's the bus behind it.
Next time someone calls it a freebie, ask one thing back. Did the bus come?
Is your bus late, packed or missing altogether? That's a story worth telling. Report it on Swaraj and let your neighbourhood back it.
Open SwarajThis newdle is updated as the story moves. New developments will be added as new stops at the end.
Sources
- Shakti costs and trips: Siasat, KSRTC RFP figures; NativePlanet, smart card tender and pending dues; Organiser, 797.16 crore journeys
- Budget: Deccan Herald, ₹5,300 crore for Shakti; The South First, Budget 2026-27; The South First, ₹4,48,004 crore budget; PRS, Karnataka Budget Analysis 2026-27
- Ridership and fleet: PTI via The Week, July 2025; The News Minute, Azim Premji University study
- Jobs and savings: Deccan Herald, Shakti impact study; The News Minute, Nagarada Shakti; The News Minute, five guarantees study; Ideas for India, Jana and Paul
- Fare box and roads: CAG audit of BMTC; Deccan Herald, tunnel toll of ₹16 per km; Deccan Herald, ₹17,698 crore tunnel tender; Deccan Herald, 16.745 km length
- Tallinn: Governing; Cities of the Future, KTH study and registrations; Planetizen on The Guardian; Estonian National Audit Office, via Viewpoint Vancouver; ERR, 2024 coalition decision
- Luxembourg: Urban Transport Magazine; STATEC, 2021 census
- Dunkirk: Quartz; Egis; Reasons to be Cheerful; L'Automobiliste on the Cour des comptes
- Montpellier: The Ecologist; Travel Tomorrow; Gulf News / AFP; Eco-Counter
- Kansas City: GovTech; Children's Mercy research; ABC News 4; KCUR
- French audit: Weka; Assemblée nationale, 46 networks; Economie Matin, 41% fare share
- Other states: ETV Bharat, Delhi 2019; ThePrint, Punjab; The Week, Tamil Nadu ₹888; YourStory, CAG Chennai survey; Business Standard, Telangana; Daily Pioneer, Pink Saheli; The South First, Andhra; Telangana Today, Andhra one year; ETV Bharat, West Bengal; The South First, Vettri Payanam
- Seats: OneIndia, fare revision; IANS via NewKerala; Deccan Herald, Auto Driverla Sevalo; Deccan Herald, private bus owners; Siasat, 4,500 e-buses
- Freebies and wages: Governance Now on the RBI's June 2022 article; Indian Chamber of Commerce on the RBI list; ETV Bharat on RBI State Finances 2024-25; PLFS 2023-24, via PARI