Councillor Jack Scott, cabinet member for transport and development, said all money the council receives from Bus Lane fines is re-invested into the transport network.
He said: 'All money we get from bus lane fines, legally, has to be re-invested into transport.
'The money we get from bus lanes does help our transport budget, but we don't want to fine people, that's not our intention but sometimes it's the only way to provide a deterrent.'
Figures from confused.com show that local councils pocketed Â£41 million nationally from fines given to drivers using bus lanes.
Regionally, councils in Yorkshire received over Â£3 million in fines in 2017 alone with over 30,000 fines being handed out to drivers in Sheffield in 2017.
Coun Jack Scott also said that the council are willing to listen to people's complaints about bus lanes not being properly marked.
He added: 'If people have got specific examples of where they feel bus lanes are not properly signed, then it's really important they tell us about that.
'If there are any suggestions about bus lanes which aren't properly advertised then let us know where they are, so we can take action and get it sorted.
'Bus lanes are an important part of our transport network and they help us give buses priority and they help make sure that buses can flow freely around our city.'
According to figures from Confused.com, nationally, 41% of drivers complained that bus lane markings weren't clear.
Lib Dem coun Ian Auckland, shadow cabinet member for transport and development, said: 'The most important thing is that bus lane fines are fair and proportionate.
'The fact is Sheffield council is not just meant to sit there and take in the money.
'If the number of fines is excessive, you've got to look at the reasons for that, which could be that the conditions aren't right, or the signs aren't clear.
'So long as you can justify the reasons and you can prove that public transport is being improved then its enforcement of bus lanes does have a part to play.'