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The current ticket sale only covers 8% of total cost.

"Luxembourg's public transport system covers the whole country and costs $562 million (€508 million) per year to run. Each year, it generates around $46 million in ticket sales, according to the ministry."

$46 mil is still a lot given the gov't tax revenue is only $25 billion / year, but I'm sure they also calculated plenty of upsides when they made the decision.