Financial status of arunachal pradesh state transport bus service: A historical approach (2006–07)

A vibrant network of bus transportation is a need of these days and of paramount importance towards fostering rapid socio-economic development especially in the hilly regions. Historically, the year 1975 marks the beginning of Arunachal Pradesh State Transport Bus Services in Arunachal Pradesh. It ventured into the field of public transport with only two buses in the state. However, it has been incurring huge losses since recent past as expenditures are surpassing income. The findings reveal that APSTS has very poor liquidity. It is found that its capacity to meet short term obligations is very weak. The need of the hour is to seek public borrowing, issue bonds and avail institutional finance to reinforce financial health.

This paper endeavors to study major sources of income and heads of expenditure of APSTs during the financial year 2006–07. Moreover, an attempt is made to analyze its liquidity position on three dimensional criteria.