Explainer: How govt plans to fund the THB20 flat train fare

The Cabinet on Friday approved the 20-baht fare cap on the state-run Red and Purple line electric trains for another year, from December 1, 2024 to November 30, 2025. 

The subsidy measure, aimed at reducing the people’s financial burden, was first implemented in October 2023 on state-run routes, to be expanded to all routes by September 2025.

To extend the flat fare cap to other electric train routes, the government is planning to use the Joint Ticket System Promotion Fund, under the new Joint Ticket Management Act, to compensate for loss of revenue to private operators.

While the bill is currently being drafted by the Transport Ministry, The Nation explores the funding sources stipulated under Section 30 of the draft Joint Ticket Management Act. 

Section 30 stipulates that the fund will consist of capital and assets as follows:

• Budget allocated by the government
• Subsidy allocated by the government
• Fees from issuing permits
• Income from permitted contributors listed under Section 31
• Contribution from transport operators under concession, joint operation or joint investment contracts that demand a contribution to the fund
• Fines received under Section 40
• Public donations
• Interest from the fund’s capital and assets

Earlier, Transport Minister Suriya Jungrungreangkit estimated that a budget of around 16 billion baht would be required to expand the flat fare cap to all train routes from September 2025 to the end of the current government’s term, which is about two years away.

In the long term, the ministry is studying the possibility of establishing an infrastructure fund so it can buy back the train operating rights from private contractors. The fund is estimated to be as large as 200 billion baht, said the minister. 

Among the proposed sources are crowdfunding under Thailand Future Fund, and the highly controversial congestion tax, to be collected from motorists who enter highly congested areas during rush hours.