Financial crisis is looming in the state-run Bangladesh Road Transport Corporation (BRTC) following implementation of the new pay scale that may cause a chaotic situation in delivering its services.

The BRTC authorities have already sought the government's special monetary allocation to overcome the crisis for continuing its services smoothly.

Currently, the BRTC has to annually spend on average Tk 3.75 crore for paying salary and allowances to its around 2,800-strong staff.

But that annual expenditure is going to rise at Tk 6.76 crore because of full implementation of the new pay scale, according to officials of the finance and accounts department of the BRTC.

It is not possible for the organisation to bear the additional expenditure by its own fund, said BRTC Chairman Mizanur Rahman.

The corporation is run by its own resources and earnings. The government only buys buses and trucks for BRTC but does not allocate fund to run the organisation, he added.

Selling passenger tickets is the main source of earning for the corporation. Besides, it also earns by renting its trucks, renting space to different offices in the BRTC building and training up drivers.

Currently, the corporation owns 1,539 buses, 108 tucks, 21 bus and truck depots and 17 training centres across the country, according to insiders.

Salary and allowances of the government employees have almost doubled because of full implementation of the new pay scale from July 1 this year.

For example, a deputy general manager (DGM) previously got Tk 39,000 per month but now would get Tk 68,000 from July this year.

“Our expenditure has sharply increased thanks to the salary hike. But our income remains the same because we cannot increase the fare,” said Amjad Hussain, director (finance and accounts) of BRTC.

When an organisation faces financial crisis, it cannot run properly, he said, adding, it is very likely that services would be affected.

Talking to The Daily Star, more than a dozen of BRTC officials expressed the fear that a chaotic situation would prevail if the problem was not addressed immediately.

“If we cannot pay salary to our staff, they would not work. So, how will we continue with our services? We need the government's financial support to run the organisation as before,” BRTC Chairman Mizanur Rahman told The Daily Star.

Eminent urban transport expert Prof Shamsul Hoque said the government should provide subsidy to improve a state service for the sake of public interest.

“But the government needs a comprehensive plan for modernisation and improvement of the state-run road transport system. Subsidy, if given, may go in vain due to lack of proper planning and management,” he told The Daily Star.

Road Transport and Highways Division Secretary MAN Siddique said, “We are talking with the officials of the government bodies concerned to allocate some fund to the BRTC.

“Besides, we have asked them [BRTC officials] to chalk out a course of action how the organisation can increase its earnings,” he added.