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After the Government's announcement, the bus ticket could exceed a thousand pesos in some provinces - Infobae
Source:
www.infobae.com
February 09, 2024
The elimination of the Interior Compensation Fund puts governors in a dilemma, who must enable increases or transfer more resources to companies. The most affected will be Buenos Aires, Córdoba and Santa Fe
By Agustin Maza
The Government eliminated the Interior Compensation Fund. (Fernando Calzada)
The decision of the national government to eliminate the Interior Compensation Fund , by which bus fares were subsidized and represented some $102,000 million in 2023, may open the door to strong increases in transportation in the provinces . In some cases it could exceed $1,000 if the subsidies are withdrawn. The measure is part of the official fiscal adjustment program and comes amid tensions with the governors due to the failure of the omnibus law .
Provincial leaders and mayors came to the crossroads and, in many cases, anticipated that they will not be able to cover with their resources the transfers that companies receive to contain the price of the ticket in the midst of joint negotiations in the sector. In addition, they maintained that the “asymmetry” with the Buenos Aires Metropolitan Area (AMBA) is deepening .
For example, Saúl Isaacson , Chamber of Multimodal Passenger Transport Companies (CETRAMP) highlighted in dialogue with Cadena 3: “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. Today there should be a 200% increase in the Córdoba rate. The user could not bear this. It is almost impossible to buy new vehicles, we have not been able to renew units in the last six years.”
Currently the minimum ticket in Córdoba is $340 after the last increase. A 200% jump would mean taking it to $1,020 for the shortest journey.
The Treasurer of the Argentine Federation of Automotive Passenger Transporters (FATAP) , Roberto Albisu, told Aire de Santa Fe that without the contribution from the National Treasury that the province receives, the minimum fare would go to 1,000 pesos. “That is the value so that the system is compensated between income and expenditure, taking into account provincial and municipal funds plus the continuity of social attributes,” he explained.
With the elimination of the Interior Compensation Fund, governors now find themselves facing a dilemma: allow greater increases to companies to cover the gap or increase the amount to subsidize transportation . The problem with this last point is that, in the midst of the financial suffocation that the provinces point out, to move forward they will have to cut other expenses, go into debt or raise taxes to generate new income.
“The provincial leaders are going to have to determine how much the ticket will cost in their jurisdictions. In the AMBA the schedule of planned increases will be respected, we are not going to charge a full rate for now ,” they commented to Infobae from the national government. Due to the use of the SUBE system, the most affected jurisdictions will be Buenos Aires (except AMBA), Córdoba and Santa Fe , although the sources did not want to give details of how much funds each will lose.
After the latest increases in Argentina, the most expensive ticket is paid in the city of Formosa with $690, followed by $590 in Corrientes. Next were Pergamino with $508, Neuquén $450, Azul $400 and Santa Fe $380 pesos. This is clear from the data published by the Argentine Association of Automotive Transport Entrepreneurs (AAETA) as a result of a survey carried out on some 60 cities.
In that sense, they recalled the decision to end the freezing of rates in the AMBA for the lines of National Jurisdiction so that the rate has greater coverage of the real cost of the service. “In this way, this measure implies a considerable decrease in subsidies that went to companies,” they mentioned.
In any case, the vice president of the Argentine Association of Automotive Transport Entrepreneurs (AAETA), Luciano Fusaro, clarified that for now the $270 ticket for the AMBA will continue to be valid and there will be no changes for at least the next two months. “In fact, if there is any change in the tariff policy, a new public hearing should be called because the current procedure established by Resolution 5 of this week of the Ministry of Transportation is still in force. Therefore, what that resolution establishes is bimonthly adjustments and the February adjustment has already been made. Therefore, until April there should not be an increase or change in the ticket, unless a new consultation is called,” he explained.
On the other hand, Transportation surprised by announcing that starting this year they will eliminate the Interior Compensation Fund whose resources were received by the bus companies that operate in the rest of the country, that is, outside the AMBA. Sources from the sector expressed to Infobae “surprise and concern” about the measure, which had not been discussed with the Government.
The Ministry of Economy seeks to cut 0.2% of GDP in subsidies during 2024. REUTERS/Matias Baglietto
“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 transportation subsidies for the AMBA, as well as establishing that the provinces would define tariff compensations and /or subsidies for public passenger transportation by automobile developed within their jurisdictions,” the statement stated.
“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 transport ticket rate. Along these lines, 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," clarified the agency led by Mogetta.
The Government hopes to reduce spending on subsidies at a rate of one third per year as detailed by the Minister of Economy, Luis Caputo . The objective set out in the roadmap agreed with the International Monetary Fund (IMF) is to cut the amount allocated to transportation by 0.2 points of GDP .
Source:
Tras el anuncio del Gobierno, el boleto de colectivo podría superar los mil pesos en algunas provincias
La eliminación del Fondo Compensador del Interior pone en un dilema a los gobernadores, quienes deberán habilitar incrementos o transferir más recursos a las empresas. Los más afectados serán Buenos Aires, Córdoba y Santa Fe
www.infobae.com
February 09, 2024
The elimination of the Interior Compensation Fund puts governors in a dilemma, who must enable increases or transfer more resources to companies. The most affected will be Buenos Aires, Córdoba and Santa Fe
By Agustin Maza
The Government eliminated the Interior Compensation Fund. (Fernando Calzada)
The decision of the national government to eliminate the Interior Compensation Fund , by which bus fares were subsidized and represented some $102,000 million in 2023, may open the door to strong increases in transportation in the provinces . In some cases it could exceed $1,000 if the subsidies are withdrawn. The measure is part of the official fiscal adjustment program and comes amid tensions with the governors due to the failure of the omnibus law .
Provincial leaders and mayors came to the crossroads and, in many cases, anticipated that they will not be able to cover with their resources the transfers that companies receive to contain the price of the ticket in the midst of joint negotiations in the sector. In addition, they maintained that the “asymmetry” with the Buenos Aires Metropolitan Area (AMBA) is deepening .
For example, Saúl Isaacson , Chamber of Multimodal Passenger Transport Companies (CETRAMP) highlighted in dialogue with Cadena 3: “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. Today there should be a 200% increase in the Córdoba rate. The user could not bear this. It is almost impossible to buy new vehicles, we have not been able to renew units in the last six years.”
Currently the minimum ticket in Córdoba is $340 after the last increase. A 200% jump would mean taking it to $1,020 for the shortest journey.
The Treasurer of the Argentine Federation of Automotive Passenger Transporters (FATAP) , Roberto Albisu, told Aire de Santa Fe that without the contribution from the National Treasury that the province receives, the minimum fare would go to 1,000 pesos. “That is the value so that the system is compensated between income and expenditure, taking into account provincial and municipal funds plus the continuity of social attributes,” he explained.
With the elimination of the Interior Compensation Fund, governors now find themselves facing a dilemma: allow greater increases to companies to cover the gap or increase the amount to subsidize transportation . The problem with this last point is that, in the midst of the financial suffocation that the provinces point out, to move forward they will have to cut other expenses, go into debt or raise taxes to generate new income.
“The provincial leaders are going to have to determine how much the ticket will cost in their jurisdictions. In the AMBA the schedule of planned increases will be respected, we are not going to charge a full rate for now ,” they commented to Infobae from the national government. Due to the use of the SUBE system, the most affected jurisdictions will be Buenos Aires (except AMBA), Córdoba and Santa Fe , although the sources did not want to give details of how much funds each will lose.
After the latest increases in Argentina, the most expensive ticket is paid in the city of Formosa with $690, followed by $590 in Corrientes. Next were Pergamino with $508, Neuquén $450, Azul $400 and Santa Fe $380 pesos. This is clear from the data published by the Argentine Association of Automotive Transport Entrepreneurs (AAETA) as a result of a survey carried out on some 60 cities.
The Transport statement
Through a statement published by the Ministry of Transportation led by Franco Mogetta, it was stated: “The National Government, complying with one of the objectives set at the beginning of the administration, has decided to reduce the subsidy to the borrowing companies (offer) of Jurisdiction National, to concentrate help to the users who need it most directly, channeling said assistance through SUBE.”In that sense, they recalled the decision to end the freezing of rates in the AMBA for the lines of National Jurisdiction so that the rate has greater coverage of the real cost of the service. “In this way, this measure implies a considerable decrease in subsidies that went to companies,” they mentioned.
In any case, the vice president of the Argentine Association of Automotive Transport Entrepreneurs (AAETA), Luciano Fusaro, clarified that for now the $270 ticket for the AMBA will continue to be valid and there will be no changes for at least the next two months. “In fact, if there is any change in the tariff policy, a new public hearing should be called because the current procedure established by Resolution 5 of this week of the Ministry of Transportation is still in force. Therefore, what that resolution establishes is bimonthly adjustments and the February adjustment has already been made. Therefore, until April there should not be an increase or change in the ticket, unless a new consultation is called,” he explained.
On the other hand, Transportation surprised by announcing that starting this year they will eliminate the Interior Compensation Fund whose resources were received by the bus companies that operate in the rest of the country, that is, outside the AMBA. Sources from the sector expressed to Infobae “surprise and concern” about the measure, which had not been discussed with the Government.
The Ministry of Economy seeks to cut 0.2% of GDP in subsidies during 2024. REUTERS/Matias Baglietto
“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 transportation subsidies for the AMBA, as well as establishing that the provinces would define tariff compensations and /or subsidies for public passenger transportation by automobile developed within their jurisdictions,” the statement stated.
“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 transport ticket rate. Along these lines, 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," clarified the agency led by Mogetta.
The Government hopes to reduce spending on subsidies at a rate of one third per year as detailed by the Minister of Economy, Luis Caputo . The objective set out in the roadmap agreed with the International Monetary Fund (IMF) is to cut the amount allocated to transportation by 0.2 points of GDP .
