The Government decided to eliminate the Interior Compensation Fund, which subsidized urban bus companies in the interior of the country, which increased tension with the governors, in full discord with the “dialogue” provincial heads after strong criticism and accusations by the president, Javier Milei, after the return of the Omnibus Law to committee in Deputies due to lack of parliamentary support.
The Transportation Secretariat reported that this measure responds to the “Fiscal Pact that provincial governors and the national government signed in 2017 and 2018, where they committed to progressively eliminate differential transportation subsidies for the AMBA, as well as establishing that the provinces would define fare compensations or subsidies for public passenger transportation by automobile developed within the scope of their jurisdictions.”
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In this way, the Government reduces the subsidy to companies providing passenger transportation services under national jurisdiction to concentrate help on users who need it most directly, channeling said assistance through the Single Electronic Ticket System (SUBE). .
From Transportation they also indicated that they decided to “end the freezing of fares that had been inherited from the previous management in trains and buses of the Buenos Aires Metropolitan Area (AMBA) for lines of national jurisdiction, thus giving the fare greater prominence in the coverage of costs necessary to operate.”
In the organization led by Franco Mogetta they 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”: “It is an assistance that It is the same for everyone, no matter where they live, and it implies a 55% discount on the public transport ticket rate, 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.”
News that is being updated.-