Among the inclusionary initiatives adopted by some Indian states is the provision of free or subsidised bus transport. For example, Delhi launched the ‘Pink Ticket’ scheme to extend the facility of unrestricted bus rides for women. Cities in Tamil Nadu offer a zero-fare bus travel scheme, allowing women to travel on government buses without charge. The Karnataka government has named a similar scheme ‘Shakti’. Maharashtra, on the other hand, provides subsidised bus travel for women at 50 percent of the normal fare under the ‘Mahila Samman Yojana’. Telangana’s ‘Maha Laxmi Scheme’ offers free bus rides to both women and marginalised groups. In Andhra Pradesh, women can travel within their districts without charge. The Andaman and Nicobar Islands, as well as BEST (Brihanmumbai Electric Supply and Transport) in Mumbai, also provide bus concessions.
Lessons from Europe
Even before free bus rides were introduced in India, several countries and cities had adopted similar initiatives. Luxembourg, a small but affluent European country, pioneered free public transport across all modes in February 2020, except for first-class train travel, followed by Malta in October 2022. Earlier, Hasselt (Belgium) abolished fares in 1997, and Tallinn (Estonia) in 2013. More recently, Kharkiv (Ukraine) adopted a similar policy in 2022, and Belgrade followed in 2025.
While Hasselt and Tallinn are smaller cities, Kharkiv and Belgrade are large metropolitan centres with populations exceeding one million. Notably, in India, decisions on free or subsidised transport have been taken by state governments, whereas in Europe, such initiatives have largely been led by city governments. This distinction reflects a broader structural difference: European cities enjoy greater autonomy, while in India, local transportation is not included in the 12th Schedule of the Constitution, which outlines municipal functions.
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The Dunkirk Model
Another city was added to the above-cited list in 2014. Mayor Patrice Vergriete, who holds a doctorate in urban planning, announced that Dunkirk, a city in France with a population of 81,920, would provide free bus services. The initiative was titled “100% free bus, 7 days a week”. The objectives were to improve mobility in the city, reduce reliance on private vehicles, and lower carbon emissions and air pollution. However, the plan was preceded by nearly four years of preparation before its rollout.
The programme was communicated to the public through the media and on the streets. This was followed by surveys and extensive dialogue with residents, leading to revisions and simplification of timetables to better align with commuting patterns. Vehicle quality improved, bus stop locations were modified, and the fleet size increased. In 2015, the city piloted the programme by introducing free weekend travel. The full free bus service was rolled out in 2018. Throughout the process, a total investment of €26.47 million was made, with a contribution of €11.65 million from the European Union’s European Regional Development Fund.
The results of the endeavour were highly encouraging. There was a 165 percent rise in bus ridership. About 10 percent of bus users had permanently given up their cars, and parking lot use declined by 30 percent. A 2019 study found that half of new bus riders were taking bus journeys they previously made by car. People travelled more to the city centre, and walking increased significantly. The initiative had little impact on cycling, which was mainly a leisure activity for residents. The initiative also catalysed a positive shift away from the idealised image of private car ownership, especially among young people.
While Dunkirk’s experience has been replicated in several European cities, debate persists over the model’s viability in major cities worldwide—including New York City, where Zohran Mamdani campaigned on a promise of free bus rides for all residents.
In Dunkirk, free bus rides cost €17 million (3.4 percent) of the city’s total budget of €500 million. However, in New York, transportation is the second-highest household cost, accounting for an average of 14 percent of household spending. Estimates for a free bus service in New York City put the cost at US$ 652 million, or about 4 percent of the Metropolitan Transportation Authority’s (MTA) total revenue. This does not account for the likelihood that free rides will boost demand, thereby increasing bus trips, which stood at 415 million in 2022. Increased travel demand will require an expansion of the city’s bus fleet. While US$ 652 million in revenue loss is a small portion of the city budget, the resulting deficit is likely to affect other services. This shortfall, however, could be offset by raising fares on other public transport modes or by increasing general taxes.
Public Good or Populism?
This scenario brings us to the debate over freebies—things given without charge—and their desirability. Western countries have practised welfarism in various forms for a long time. In India, this is a more recent phenomenon, raising concerns in certain quarters, especially about the growing use of such measures. Critics have cautioned that such measures may create disincentives to work and discourage labour force participation. Besides, they can place significant pressure on a country’s economy by diverting capital to unproductive expenditures and crowding out resources required for development and infrastructure upgrades. The Economic Survey 2025–26 reported that unconditional cash transfers had risen to become a central pillar of national welfare policy and amounted to INR 1.7 lakh crore in FY 26.
Economists and policy analysts, however, have argued that the distribution of certain commodities, such as foodgrains, could be classified as essential. Other goods have been labelled as ‘merit goods’, which yield significant public benefits, especially in health and education-related areas, such as mid-day meals. However, the inclusion of cash transfers or goods such as TV sets is often seen as less justifiable. Money that is directly transferred to an individual may lack clearly defined public objectives beyond individual benefit and may, in some cases, influence political preferences. This may lead to greater consumption, but the public authority has limited control over how the money is spent. Despite these criticisms, several social commentators have also justified such measures.
While a universal definition of ‘freebies’ remains difficult, one possible approach is to consider a cap on such expenditures as a share of city and national budgets. Such a cap would be relatively easy to monitor and could help prioritise expenditures that deliver greater public value.
In the suggested gradation, free bus service emerges as one of the most desirable interventions on account of the several public benefits it generates. It promotes public transport and discourages private car use. It reduces traffic congestion and air pollution, and contributes positively to the urban environment. It can also release parking space due to reduced demand. Walking to and from bus stops contributes to public health. These benefits are complemented by its inclusionary nature, particularly for lower-income groups. Given its global popularity, free bus transport can be considered a significant public good.
Conclusion
The Dunkirk experiment demonstrates how free bus transport, when carefully designed and supported by complementary investments, can yield significant mobility, environmental, and social gains. For Indian cities, grappling with congestion, pollution, and unequal access, such initiatives hold promise as targeted, inclusion-oriented interventions rather than broad-based welfare measures. The key lies in embedding them within a broader framework of transport planning, fiscal prudence, and institutional accountability. Free bus services should not be viewed in isolation, but as part of a larger effort to shift commuters away from private vehicles, strengthen public transport systems, and improve urban livability. As Indian cities continue to expand, the challenge will be to strike a balance between equity and efficiency, while ensuring that such schemes remain financially sustainable and deliver tangible public value.
Ramanath Jha is a Distinguished Fellow at Observer Research Foundation.
This article was originally published on the Observer Research Foundation website.