The Ministry of Economy dictated a reduction in the subsidy for transport companies in the AMBA and a total reduction in the rest of the country. The social rate is maintained in the SUBE.
The National Government decided “reduce the subsidy to borrowing companies” of passenger transportation service after this week’s fare increase, it was officially reported. Instead, they ensure that these funds will be channeled to assist users through the SUBE card.
The statement from the Secretary of Transportation also indicates that, starting this year, “The Interior Compensation Fund is eliminated, whose sums were also received by companies providing services from the rest of the country.” Along these lines, the text highlights that the measure is part of the rate unfreezing process.
“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 transportation,” indicates the official letter.
Subsidies: only the social rate for transport remains
From the Secretary of Transportation, they announced that people need the contribution of the National Statel, “they will continue to have the Social Attribute throughout the national territory where the SUBE card operates.”
This coverage applies to the entire country and implies a 55% discount on the public transport ticket fare. “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,” he completes.
Source: Ambito
