Is Free Public Transport the Future, and When Will That Future Arrive for Us?
Report by the State Audit Institution
One-third of Serbia’s citizens are dissatisfied with the functioning of urban and suburban transport, and nearly one million residents lack access to organized public transport services, according to a 2015 report by the State Audit Institution (SAI) on the effectiveness of urban and suburban transport operations. The report also notes that the Ministry of Construction, Transport, and Infrastructure had not developed a transportation development strategy beyond 2015 or established standards for municipal service operations. In an interview with Telegraf, State Auditor Pejović stated:
“Public urban and suburban transport in Serbia is underdeveloped, relying predominantly on bus transport, while only 9% of municipalities have adopted transport development plans for their territories, which would ensure the long-term development of transportation systems, including urban and suburban transport.”
According to the SAI, effective and efficient operation of urban and suburban passenger transport at the local level requires strategic guidelines and regulated standards for municipal services at the national level. The issues highlighted in the SAI’s 2015 report remain present today, as a national transportation strategy has still not been adopted.
City of Belgrade
Who Offers Free Public Transport?
One possible solution could be the introduction of free public transport. Many cities and countries around the world already provide free public transport to their residents. These include four cities in Australia, one in Belgium, 13 in Brazil, one in Bulgaria, three in Canada, two in China, three each in the Czech Republic and Denmark, five in England, and one each in Estonia, Finland, the Faroe Islands, Italy, Lithuania, Malaysia, and Norway. Additionally, over 30 cities in Poland, as well as cities in Russia, Scotland, Slovenia, and Spain, offer free transport. Seven Swedish cities and one city each in Thailand, Turkey, Wales, and Ukraine also provide free public transport. In the United States, 33 cities have implemented free public transport systems.
Free public transport exists in major cities like Chengdu in China (14,047,625 residents), Bangkok in Thailand (8,280,925 residents), Sydney in Australia (4,757,083 residents), and Melbourne in Australia (4,442,919 residents). Germany is considering implementing free transport in Hanover and Bonn. Estonia became the first European country whose capital, Tallinn, introduced free public transport, while Scotland became the first country to provide free transport nationwide for citizens under 20 and over 60.
In Serbia, the cities of Kragujevac and Jagodina lead the way, offering free urban transport for all residents.
Free Transport as an Environmental, Socioeconomic, and Anti-Corruption Measure
In the long term, well-organized free public transport aims to reduce the use of private vehicles. This would decrease pollution and traffic congestion in urban areas. From a socioeconomic perspective, public transport, as the name suggests, serves the public interest. The economy of a city depends on public transport, which must exist even when it is unprofitable for operators. This is why most cities worldwide have state- or city-owned transport systems.
For example, Athens finances public transport through a special municipal VAT, ensuring economic sustainability regardless of the financial state of the operating company. In Athens, public transport is primarily used by the poor and middle class, while wealthier individuals prefer their own cars. However, wealthier citizens contribute more per capita to financing public transport through higher VAT payments on expensive goods. Despite this, the lower-income groups collectively contribute more to the transport budget due to their larger numbers. This system ensures that while most of the cost is borne by those using the service, part of the expense is shifted to wealthier citizens, making it a strong social measure.
The social aspect of free transport lies in its accessibility to everyone.
Anti-Corruption and Anti-Monopoly Aspects
Introducing free transport also serves as an anti-corruption and anti-monopoly measure. This approach contrasts with the current trend in Serbia, where public utilities providing urban transport are being privatized.
Proponents of privatizing transport argue that it relieves municipal budgets and places operational responsibility on private companies. However, in practice, while the transport system remains profitable, it is managed by the privatizing firm. When it falls into crisis, local governments, which sold the public company, take over the indebted firm, repay its debts, and organize transport at the expense of taxpayers because urban transport must exist. This creates significant opportunities for corruption.
When transport is publicly managed, monopolies are avoided. However, privatization that grants exclusive rights to one company to organize transport in a specific area creates a monopoly, forcing citizens to accept high ticket prices or poor service quality.
Public Transport as a Security Resource
Public transport is also a vital security resource, used during emergencies such as fires, floods, or wars to transport people and goods. If public transport is owned by private entities, there is a risk that the owner might refuse to use the vehicles for such purposes.
Free public transport would address all these issues effectively.
