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ECONOMY | 27-12-2019 15:03

Six-month freeze for public transport fares in Greater Buenos Aires

Government announces freeze of public transport fares in and around the capital for six months, as it undertakes a comprehensive review of increases.

The national government has announced it freeze public transport fares in and around the capital for six months, as it undertakes a comprehensive review of the system in the metropolitan area of Buenos Aires.

The decision means the government will allocate 60 billion pesos to cover subsidies for the 180 days the review will last. During 2019, the government spent 120 billion pesos on the same subsidies, according to Noticias Argentinas.

The decision was announced Friday by Transport Minister Mario Meoni, who also informed the Buenos Aires City government and Buenos Aires Province governments of the decision. It will affect approximately 10 million people who use public transport every day in Greater Buenos Aires.

Transport fares were last updated in March. Former president Mauricio Macri later halted increases and increased subsidies within the framework of the election campaign.According to an analysis by Elypsis, the freezing of fares implies an increase in subsidies that will cost the government at least 0.3 percent of Argentina's gross domestic product, though the consultancy firm said a final figure would depend on talks over fares in the second half of the year.

According to Transport Ministry data cited in a report by La Nación on Friday, the State finances the cost of 60 percent of a bus ride and as much as 90 percent of a train fare.

– TIMES/NA

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