THE Jamaica Urban Transit Company (JUTC) is projecting a net deficit of $7 billion in the next fiscal year, even as it plans to roll out more buses and increase the number of passengers carried.

The company plans to increase its fleet of buses by 50 in the new fiscal year which begins on April 1, 2023 and ends on March 31, 2024. This, the company said, should help it to boost passenger numbers in the next fiscal year by 72 per cent to 31 million, at an average of 85,000 passengers per day. An average of 288 buses are expected to run each day to meet the projection. In the current fiscal year, the company transports roughly 50,000 passengers per day on about 176 buses on average. Its mandate is to provide between 25,000 and 31,000 seats each day.

However, even though the JUTC has projected its passenger numbers will grow 72 per cent in the upcoming year, its projected revenue is expected to grow at a slower rate of 63 per cent to $2.87 billion. The company makes 95 per cent of its revenues from fares.

The revenues are equivalent to 57 per cent of staff cost which is expected to top out at just over $5 billion for 1,820 people. That is 69 more people than the current staff complement of 1,751.

Overall, the JUTC is expecting to spend $14.3 billion. Staff costs, fuel and lubricants, and repairs and maintenance account for 80 per cent of the spending. Toll charges chiefly for buses using the Portmore causeway are expected to increase 80 per cent to $338 million.

Of the shortfall between the $14.3 billion in expenses and the $2.87 billion in revenues, the Government is expected to contribute $7.1 billion in grant while depreciation and monies from bank charges and interests should account for $2.6 billion.

That should leave the company with a net deficit of $6.9 billion, which the company is yet to outline how it will be financed.