Title The Study of Execution Mode of Giving Subsidy to the Mass Transportation Industry for Offering the Legal Discounted Ticket to the Elderly and Disabled Passengers
Dept Transportation Operations and Management Division
Year 2007
Month
Price
Summary The senior citizens and people with disability in Taiwan pay only half the price by law when taking mass transportation. According to the Act for Developing Mass Transportation, the superintended central government should coordinate related government organizations to budget for subsidizing the shortage of ticket revenue. This study is to find possible subsidy funds for this social welfare policy in order to offer suggestions for government to make decisions.

  On the basis of the estimated population of senior citizens and people with disabilities, this study calculates the increasing shortage of ticket revenue mentioned above from year 2008 to year 2151 in Taiwan. Taking year 2008 as an example, the shortage of ticket revenue is about NT$ 5.3 billion. The subsidy of central government to the carriers of highway, railway, civil aviation and ferry is about NT$ 4 billion. The subsidy of local governments to the carriers of city bus and mass rapid transit is about NT$ 1.3 billion.

  The possible funding sources for central government to offer the subsidy to mass transportation include General Budget, Air Pollution Prevention and Control Fee, Social Welfare Fund, Lottery Revenues for National Annuity, Fuel Tax of Motors, and National Freeway Construction and Management Fund. The possible funding sources for local governments to offer the subsidy include General Budget, Parking Lot Operation Fund, Lottery Revenues for Social Welfares, and Employment Fund for the Disabled. After analyzing the results of questionnaires to experts, this study suggests the possible funds sources.

  This study proposes short, middle, and long-term strategies. In the short term, the government should give subsidy only to the carriers that carry higher percentage of elderly and disabled passengers if the subsidy fund is not sufficient. In the middle term, the government should avoid unbearable financial burden by limiting the legal discounted tickets only for the trips that are necessary for their daily lives. In the long term, it is suggested that the government should establish Mass Transportation Development Fund, which should include the current possible funds and appropriate new sources of taxes to set up stable subsidy funding pool. Besides, the government may evaluate the possibility of giving different fixed transportation pensions to the senior citizens and people with disability according to the criteria such as age, degree of disability, and income level.
Post date 2009/12/10
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