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The leader of a Leicestershire council said the government is not giving it enough money to cover the cost of a national concessionary bus pass.
The scheme offers free off-peak bus travel throughout England for people aged 60 and for those with qualifying disabilities.
Richard Shepherd, leader of Charnwood Borough Council, said he is faced with a budget deficit of £280,000.
The council receives about £1.25m from the government.
Forecasts based on the cost of the scheme during the first six months suggest the costs of providing concessionary travel will be in the region of about £1.5m.
Mr Shepherd said: "We are pleased to be associated with the scheme and recognise the benefits to our customers, but there does appear to be a shortfall in government funding resulting in a heavy burden upon council tax payers."
The Department for Transport (DoT) said funding formulas had been agreed with councils in advance but it would always listen to new feedback on the scheme.
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