Research On Financial Subsidy Mechanism Under The Cost Regulation Policy Of W Bus Group Co.Ltd

As the development of cities and explosion of population,traffic congestion and environmental pollution are becoming urgent problems.It has been proved that developing a compact traffic system which is consist of track traffic and buses is an effective way to change the travel habits of citizens and relive the traffic pressure.In our country,“public traffic in priority” and low price in public transport are implicated to develop the public transport system which takes more than 60% volume of passengers.The ground public transport is an important social public welfare whose revenue could not cover the cost.Therefore,it needs the government subsidy to sustain operation.W City implements “public traffic in priority” police and develop public transport system.It offers preferential policy of bus transition to change the citizens' travel habits and solve the traffic and environmental problems.To cove the loss and ensure the development of the public bus corporation,the government calculates the subsidy for the public bus corporation according to regulation cost measurements,and subsidized it.2013-2016,it has been subsidizing the public bus corporation for more than 2.54 billion yuan,and the subsidy has doubled each year.The enormous improvement of the subsidy,on the one hand,has brought financial burden to city,and on the other hand,was still not enough for the operation of the corporation who is hardly to manage the business.It indicates that the subsidy mechanism and the calculation method should be adjusted to improve the efficiency of the using of subsidy.The research object of the paper is W city's ground public transport.To begin with,the paper reviews the research results both domestic and foreign on the subsidy for public transport,and analyzes the content and the method of W city's subsidy policy.In addition,according to the operation and difficulties of the corporation,the paper analyzes the problems and causes of the government subsidy from the range of the subsidy,calculation method,evaluation mechanisms and source of the subsidy.To combine the financial index of the corporation,the paper analyzes the cost index and revenue index of the regulation,then,summarizes the features of the financial subsidy and propose scientific advices to improve thefinancial subsidy method.At last,the paper puts forward improvement measures to assist the overall development of the public bus corporation,and efficiency of the use of the financial subsidy.