https://en.wikipedia.org/wiki/List_of_countries_by_rail_usag...
That's what I thought you were saying, but that's not what I'm saying. There might never be enough local money to support it. But the regional or higher levels of government might think it's strategically important, or even profitable over a much wider area beyond local municipalities. For example, the USPS services rural areas where they lose money because it's considered important enough.
We know the line in question was not profitable, that's why it was shut down. I don't know if this was beyond municipality level but I would assume so.
1. Why would you verify local need, if the need is national?
2. Why would you verify inability to pay with ability to pay?
Spain's demographic problems are exacerbated by lack of rail access to certain areas. Portugal faces similar issues. If they want a strategic rail line, why would they apply the unrelated criteria you propose?
If it's not profitable nationally then I argue the need isn't very big, so they should spend their tax money more wisely on things where the need is clear. Local municipalities are well aware of their needs hence why it is better to have it local.
I don't get your two questions, maybe you can rephrase them?
Here in Portugal, the formerly national rail line "Comboio Portugal" was privatized and sold off to 1 (one) company. This was the stupidest possible thing we could have done. They promptly shutdown many interior (lower profit) lines and left many areas as transport-deserts, shifting even MORE traffic to our limited roads infrastructure (the entire eastern side of Coimbra just shut down afterwards as a result. It's still low-value real-estate for precisely the lack of transport. The famous Lousã line etc.) Nevermind that this monopolistic idiocy was repeated across telecom and other industries, focusing purely on railways, we have basically coastal coverage with some select lines through the interior (The once-a-day Alfa Pendular Lisboa-> Madrid line, for example)
Our railway decadence roughly mirrors the US rail decline, as cars clearly dominate the Iberian peninsula...