Experts have stated that a subsidy for part of the metro fare is crucial to save Rio's transportation system from collapse, as the government plans to cover a fare increase.
Experts consulted by RJ2 have highlighted the necessity of a fare subsidy to prevent a collapse of the metro system in Rio de Janeiro. The planned increase in the metro fare, scheduled for April, is set to raise the price from R$ 7.90 to R$ 8.20. However, this increase will not directly impact passengers since the state government has committed to cover the additional R$ 0.30, meaning commuters will not notice the added cost, though it will increase the state's expenses.
The recommendation for the subsidy comes from the regulatory agency following a study conducted by PUC-Rio. The university indicated that maintaining the current fare would incur an annual cost of R$ 50.3 million, while the government estimates the financial impact to be lower, at R$ 37 million. This financial assistance aligns with the government's broader strategy to manage its budget during a year when the fiscal deficit is anticipated to decrease—from about R$ 19 billion to R$ 12 billion—due to participation in the State Debt Refinancing Program (Propag).
The implementation of the subsidy represents a critical strategy to sustain the metro system's viability, especially amidst ongoing fiscal challenges. With the regulatory body's push and academic backing, the subsidy approach could avert what has been termed a 'death spiral' for public transportation in Rio, ensuring that the system remains functional and accessible for regular commuters.
