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Economy Bus fare increase: the Government announced that it will also "correct" subsidies in AMBA

The Executive Power answered the criticism of the governors and assured that it is not its responsibility to subsidize transportation in the interior of the country. In addition, it anticipated that there will also be "corrections" in the Metropolitan Area, which will cause an increase in the ticket price.

Presidential spokesman, Manuel Adorni, responded to the governors' criticisms during his regular press conference. He explained that the elimination of subsidies to provincial transportation is the responsibility of the provinces, not of the national government, and that the provinces should increase fares if they cannot sustain the subsidies. He stated that the government will continue to subsidize transportation in the metropolitan area and that there will be corrections in the fares, with an expected increase in the value of the ticket. He also mentioned that work is being done to create a special authority for transportation in Buenos Aires.




The measure that provoked the anger of governors:
El Gobierno nacional ha decidido eliminar el Fondo Compensador del Interior a partir de 2024, que subsidiaba a las empresas de colectivos urbanos en las provincias. Esta medida, en línea con el ajuste fiscal y en medio de tensiones con las provincias, deja a los gobernadores la decisión de destinar más recursos para mantener los precios de los pasajes o permitir incrementos. Los fondos, alrededor de $102.000 millones, serán cortados de inmediato. Sin embargo, se asegura que los usuarios seguirán recibiendo descuentos del 55% en el transporte público a través del Atributo Social de la tarjeta SUBE, con el objetivo de beneficiar a quienes más lo necesitan.

The reaction of the provinces:
Governors expressed their dissatisfaction with the elimination of transport subsidies in the provinces, pointing to a critical moment after the failure of the law and the tensions with the Casa Rosada. In Santa Fe and Mendoza, provincial leaders harshly criticized the measure, while representatives of the transportation sector warned of possible significant increases in ticket prices, which could reach up to 1,000 pesos in some provinces, which would represent an increase of 200%.

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There is going to eventually be a big backlash by people. Rates have gone up 600% since Milei took over. Eventually people are not going to put up with these increases.


 
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