ABSTRACT
In most countries, support for public transport has traditionally been fi nanced from general taxation. This means that there is no direct link between the source of revenue and what it is used to fi nance. There is no earmarking (hypothecation) of revenue for any particular purpose. The result is that, in the competition for funds, public transport often falls behind spending for other public services such as education and health. This is problematic because transport investments often require large sums of money over long periods of time, but politically it is easier to ‘make do and mend’ on public transport than on health and education. This situation has led to a search for new sources of funding, which have included the private sector, via privatization or contracting agreements, and earmarked charges or taxes to provide an assured income to support public transport operations and investment.
