Financing Public Transportation of Passengers

Abstract

Public transportation of passengers has very important role in the life and functioning of urban areas. Public transportation of passengers stimulates effective economic activities, improves the life standard and increases the mobility of the population. Such system is difficult for financing. The revenue that the system brings is not sufficient to compensate for the operational costs. This research presents the possible ways of financing the system of public transit. There are various experiences in financing the public transit in European cities, but this problem has been also identified in the cities all over the world. The system of public transit in the Republic of Serbia has recently started to implement activities related to the improvement in the quality of work and services, as well as rationalization of the system in all aspects of business and operation, improvement of organization and maintenance at all levels, and increase in the efficiency and reputation.