Government Financial Support and Operating Revenue of State Transport Undertakings in West Bengal: A Longitudinal Analysis, 2010–11 to 2021–22

This study examines the relationship between government financial support and operating revenue among State Transport Undertakings (STUs) in West Bengal over the period 2010–11 to 2021–22. Using reconstructed longitudinal data from Ministry of Road Transport and Highways statistics and West Bengal government budget documents, the study distinguishes reported revenue from net operating revenue after subsidies and reimbursements. It examines operating costs, operating under-recovery, government support and related performance indicators using nominal and inflation-adjusted measures. Correlation analysis and log-log regression models are used to assess the association between government support and operating revenue, while robustness checks examine the effects of trend adjustment, price normalization, exclusion of an influential year and first-difference estimation. The findings indicate a strong positive association in nominal level data, but substantially weaker relationships under several robustness specifications. The results therefore do not support interpreting the estimated nominal elasticity as a causal fiscal multiplier. The study highlights the importance of distinguishing financial support from operating revenue when assessing the fiscal and operational performance of public transport undertakings.