Delhi Metro Subsidy More than National Income per Capita
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Delhi Metro Subsidies: More than GDP per Capita
As is the case with all new rail systems, the Delhi metro system opened
to praise and hosannahs a few years back. To read the mass transit
press, it would not be hard to imagine that the metro had transformed
Delhi. The reality, however, is quite different. While the usual
cheerleaders maintain their chorus, the stark reality raises serious
concerns.
The metro was to have carried more than 2 million passengers per day,
but carries less than 500,000. This is not actually such a bad showing,
compared to Kolkata (Calcutta), which carries only 10 percent of its
projected ridership.
But that is not the most significant difficulty. Dinesh Mohan of the
Business Standard calculates the annual subsidy per passenger at 35,000
Rupees (Rs). This is more than the gross domestic product per capita of
the nation (approximately Rs 32,000). The national income per capita is
even less
As Mohan writes, "This certainly cannot be justified as a public
expenditure in a cash-poor society. The obvious question that arises
is, why does a small minority of Delhi's population deserve such a huge
national subsidy?"
Posted by Wendell Cox on October 19, 2006 08:22 AM | Permalink