DEVELOPMENT OF SELF-FINANCING IN PROVIDING PUBLIC TRANSPORT ACTIVITIES

Authors

DOI:

https://doi.org/10.31891/mdes/2024-12-13

Keywords:

public utilities, local budget, tariff, financial support, transport company, metro finance, advertising revenue, recovery rate

Abstract

The planned profit is taken into account when determining the tariffs for transport services of the Kyiv underground subway and is used for capital investments, technical re-equipment of enterprises, and achieving other goals in accordance with the officially approved program for the development of the metro. The amount of income of the enterprise as an independent source of revenue is determined by the level of fares for public transport, which have not been revised for several years, and the participation of the enterprise in the unified tariff system of the city. This fact limits the ability of the metro to generate sufficient revenue to fully cover operating costs, not to mention the creation of a development fund.

To solve the problem, general scientific and special methods of cognition were used. In particular, quantitative methods of analysis of economic indicators (observation, comparison, grouping, structuring, generalization), statistical research methods, methods of theoretical generalization (to solve the problem), and tabular methods (for clarity of presentation).

Currently, the revenues from the primary market of advertising spaces do not meet the metro's need for financial resources for operating activities and capital investments for further development and construction. In order to change the situation in the direction of targeted use of advertising revenues to provide enterprises with financial resources for development, it is necessary to revise the relationship between the city and intermediaries in the formation of primary and secondary advertising in the direction of eliminating intermediaries and attributing income directly to the market value of the place instead of fixed costs. This would also make it possible to clearly and transparently account for both the advertising space itself and the income from its use.

Published

2024-06-25

How to Cite

BURIACHENKO А., ZAKHOZHAY К., & LOGVINOV П. (2024). DEVELOPMENT OF SELF-FINANCING IN PROVIDING PUBLIC TRANSPORT ACTIVITIES. MODELING THE DEVELOPMENT OF THE ECONOMIC SYSTEMS, (2), 102–106. https://doi.org/10.31891/mdes/2024-12-13