He government of Javier Milei announced the deregulation of public passenger transport fares and the elimination of the “Interior Compensating Fund”Manager subsidize transportation from the interior of the country through transfers made from the National State. In this way, assistance to companies in the interior of Argentina is eliminated. This was announced by the Ministry of Economy, headed by Luis Caputo, through a statement.
This provision takes place at a time of tension between the Executive and the governors, following the fall of the Omnibus Law project. In fact, the president himself was, during the last few days, retweeting, on his
The latter was complemented by the recent statement from the President’s Office, which directly attacked the governors, who “They made the decision to destroy the ‘Bases and Points Law for the Freedom of Argentines’ article by articlehours after agreeing to accompany her.” Along these lines, he indicated that the provincial executives “decided to turn their backs on the Argentines to protect their interests and prevent the National Government from having the tools to solve Argentina’s structural problems.”
“We saw this coming. It is a substantial change because between 20 and 25% of income are national subsidies. It ends up completely unbalancing us,” said Saúl Isaacson, representative of the Business Chamber of Multimodal Transport (CETRAM), in dialogue with Chain 3 Rosary.
“These decisions are consistent with the Fiscal Pact that Provincial Governors and the National Government signed in 2017 and 2018, where they committed to progressively eliminate differential subsidies in transportation for the Buenos Aires Metropolitan Area (AMBA), as well as establishing that the provinces would define fare compensations and/or subsidies for public passenger transportation by automobile developed within the scope of their jurisdictions,” the Economy statement states.
Reduction of subsidies to the AMBA
It was also announced reduction of subsidies intended for public passenger transport companies. “The National Government, complying with one of the objectives set at the beginning of the administration, has decided to reduce the subsidy to borrowing companies (offer) of National Jurisdiction, to concentrate the help to the users who need it most directly, channeling said assistance through SUBE,” the letter stated.
One of the measures that stand out, in this sense, is the end of the “freezing of rates that had been inherited from the previous management”with the presidency of Alberto Fernández, on buses and trains in the Buenos Aires Metropolitan Area (AMBA), something that took effect in the last hours, with increases of 250%, which brought the minimum fare to $270 and $130, respectively .
The social rate is maintained
On the other hand, it was clarified that “the people who use the service and who need the contribution of the National State will continue to have the Social Attribute throughout the national territory where the SUBE card operates.”
“This is assistance that is the same for everyone, regardless of where they live, and that implies a 55% discount on the public transportation ticket rate,” the text added, highlighting that “the decision of the National State is “that the funds reach citizens directly, without intermediaries of any kind, and thus benefiting the people who need it most.”
In this way, and looking to the future, only those people who are included in the benefit would maintain social assistance, which applies to retirees and pensioners, students of the Progresar program, domestic work personnel, veterans of the Malvinas War and beneficiaries of the Universal Child Allowance, among others.
News in development…
2024-02-08 13:35:00