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The bus ticket in Córdoba doubled its price and will cost $700 starting tomorrow, Saturday - Infobae
Source:
February 16, 2024
The measure comes after the elimination of the Compensation Fund. It is the second increase that is applied in the capital of the province, this time the jump is 106 percent. The new rates will take effect starting tomorrow.
The increase in bus fares in the capital of Cordoba will take effect from this Saturday
Starting this Saturday, the bus ticket in the city of Córdoba will go from $340 to $700, in what will be the second increase in less than a month, this time by 100 percent. The mayor's office had recently warned that it would not be able to maintain the current price, after the elimination of transport subsidies in the interior of the country decided by the Government of Javier Milei .
According to the new officially reported rate table, the massive rate will be set at 700 pesos. On the other hand, the ring rate and the night rate will be set at 805 pesos starting tomorrow. That leaves the fare in this city as the most expensive in the country as can be seen from the latest survey by the Argentine Association of Automotive Transport Entrepreneurs (AAETA).
The decision had been announced this Thursday by the mayor of the capital of Cordoba, Daniel Passerini , in radio statements. “Tomorrow (today) we are going to define the rate adjustment, we do not want to reach rates of $1,100 or $1,200. “Each mayor has a different reality according to the number of groups and companies,” he noted. He also declared that he will request an audience with the Minister of the Interior, Guillermo Francos , to request the co-participation of some tax that replaces the income that will be lost due to the elimination of the Interior Compensation Fund that became known last week, through which transfers were allocated to transportation in the provinces.
“The national government is pushing us to carry out a rate increase. The bus ticket without subsidies should cost between $1,100 and $2,200, which is an increase that we do not want to apply because people are not going to resist it,” Passerini said. The mayor of Córdoba reiterated that the Municipality contributed nearly $4,000 million to keep the cost of the ticket with few variations, which until this Thursday has a price of $340 pesos.
The bus ticket in Córdoba will be one of the most expensive in the country.
“There is an aggravating factor in Córdoba and that is that Ersa (the city's main company) is leaving, we will surely have to allocate funds to cover its departure. The only way to start generating a resource without imposing a new tax is to share the Fuel Tax to replace the Compensation Fund, which was withdrawn illegally,” he concluded.
Javier Milei 's decision to cut subsidies to bus companies in the interior after the dispute with the governors over the failure of the omnibus law could bring the minimum ticket in some parts of the country above 1,000 pesos and revived the debate about asymmetries with the Buenos Aires Metropolitan Area (AMBA) . Behind these tensions is also the objective of fiscal balance in 2024 that the national government set as its horizon and which will imply, as has been publicly stated, a greater adjustment for the provinces .
According to the latest report from the Congressional Budget Office (CPO), spending on transportation subsidies totaled about $951,987 million in 2023, an increase of 4.2% compared to the previous year in real terms. Almost half of these resources ($479,216 million) were allocated to the Transportation Infrastructure System Trust Fund (FFSIT).
Precisely, $353,815 million, 73%, were allocated from the FFSIT for the fare compensations foreseen for public automotive passenger transport of the AMBA, 18.6% more than the previous year, discounting inflation . Meanwhile, the interior of the country received, through the Interior Compensation Fund , which the Ministry of Transportation eliminated, some $102,000 million, 27%, with a real growth of 9% compared to 2022. As the Budget was extended, it is expected that these items are the same during this year at least as the Executive Branch.
Precisely, that is the asymmetry that the provinces have complained about for a long time and that will now deepen with the elimination of transfers.
The savings for the National Treasury in this case will be almost 0.3 points of GDP in the objective of reducing the fiscal deficit by 6 points this year. Meanwhile, the total mass of total economic subsidies until 2023 represented 2.2 points of GDP ($4 trillion), with a drop of 18.4% year-on-year in real terms. The largest portion went to energy with some $2,734 billion, which marked a drop of 26.5% compared to the previous year.
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 amounts 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.
Source:
February 16, 2024
The measure comes after the elimination of the Compensation Fund. It is the second increase that is applied in the capital of the province, this time the jump is 106 percent. The new rates will take effect starting tomorrow.
The increase in bus fares in the capital of Cordoba will take effect from this Saturday
Starting this Saturday, the bus ticket in the city of Córdoba will go from $340 to $700, in what will be the second increase in less than a month, this time by 100 percent. The mayor's office had recently warned that it would not be able to maintain the current price, after the elimination of transport subsidies in the interior of the country decided by the Government of Javier Milei .
According to the new officially reported rate table, the massive rate will be set at 700 pesos. On the other hand, the ring rate and the night rate will be set at 805 pesos starting tomorrow. That leaves the fare in this city as the most expensive in the country as can be seen from the latest survey by the Argentine Association of Automotive Transport Entrepreneurs (AAETA).
The decision had been announced this Thursday by the mayor of the capital of Cordoba, Daniel Passerini , in radio statements. “Tomorrow (today) we are going to define the rate adjustment, we do not want to reach rates of $1,100 or $1,200. “Each mayor has a different reality according to the number of groups and companies,” he noted. He also declared that he will request an audience with the Minister of the Interior, Guillermo Francos , to request the co-participation of some tax that replaces the income that will be lost due to the elimination of the Interior Compensation Fund that became known last week, through which transfers were allocated to transportation in the provinces.
“The national government is pushing us to carry out a rate increase. The bus ticket without subsidies should cost between $1,100 and $2,200, which is an increase that we do not want to apply because people are not going to resist it,” Passerini said. The mayor of Córdoba reiterated that the Municipality contributed nearly $4,000 million to keep the cost of the ticket with few variations, which until this Thursday has a price of $340 pesos.
The bus ticket in Córdoba will be one of the most expensive in the country.
“There is an aggravating factor in Córdoba and that is that Ersa (the city's main company) is leaving, we will surely have to allocate funds to cover its departure. The only way to start generating a resource without imposing a new tax is to share the Fuel Tax to replace the Compensation Fund, which was withdrawn illegally,” he concluded.
Javier Milei 's decision to cut subsidies to bus companies in the interior after the dispute with the governors over the failure of the omnibus law could bring the minimum ticket in some parts of the country above 1,000 pesos and revived the debate about asymmetries with the Buenos Aires Metropolitan Area (AMBA) . Behind these tensions is also the objective of fiscal balance in 2024 that the national government set as its horizon and which will imply, as has been publicly stated, a greater adjustment for the provinces .
According to the latest report from the Congressional Budget Office (CPO), spending on transportation subsidies totaled about $951,987 million in 2023, an increase of 4.2% compared to the previous year in real terms. Almost half of these resources ($479,216 million) were allocated to the Transportation Infrastructure System Trust Fund (FFSIT).
Precisely, $353,815 million, 73%, were allocated from the FFSIT for the fare compensations foreseen for public automotive passenger transport of the AMBA, 18.6% more than the previous year, discounting inflation . Meanwhile, the interior of the country received, through the Interior Compensation Fund , which the Ministry of Transportation eliminated, some $102,000 million, 27%, with a real growth of 9% compared to 2022. As the Budget was extended, it is expected that these items are the same during this year at least as the Executive Branch.
Precisely, that is the asymmetry that the provinces have complained about for a long time and that will now deepen with the elimination of transfers.
The savings for the National Treasury in this case will be almost 0.3 points of GDP in the objective of reducing the fiscal deficit by 6 points this year. Meanwhile, the total mass of total economic subsidies until 2023 represented 2.2 points of GDP ($4 trillion), with a drop of 18.4% year-on-year in real terms. The largest portion went to energy with some $2,734 billion, which marked a drop of 26.5% compared to the previous year.
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 amounts 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.
