Fares in public transportation - buses and trains, are expected to rise in July by 12%

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by Ifi Reporter - Dan Bielski Category:Government Jun 19, 2023

TheĀ fares for travel in public transportation - buses and trains, are expected to become more expensive in July by about 12%, this is due to the increase in the input basket index of public transportation. Although the travel rates were always linked to the index and the increase was expected, the Ministry of Transport did not act to prevent it until now and even blame the previous government.
The basket is automatically calculated according to indicators, such as bus drivers' wages, which have increased, and fuel prices, which have also increased. The indices are measured at the end of December each year. It has been years since the basket has not increased significantly, but this time it is an increase that affects public transportation consumers. The Ministry of Transport and the Ministry of Finance are currently discussing whether the increase in prices can be prevented.
The Ministry of Transportation claims that "this is an inheritance we received from the previous government. The installation of the price increase was signed by the former Finance Minister Liber-Mass (as it was written in the original, Yar) and the former Minister Merav Michaeli." The Ministry added that "from the moment Minister Regev was informed of this situation, She is working together with Finance Minister Bezalel Smotrich with the aim of postponing the decree, and finding a solution to the increase in public transportation prices, which should come into effect on July 1st. It is not possible that with the current cost of living, the prices of public transportation will increase by about 12%."
The increase in public transportation fares will affect Regev's plan to lower public transportation prices, starting this September. The program, called "Transportation Justice", was allocated 360 million shekels. According to the Ministry of Transportation, as part of the program, among other things, travel fares will be reduced by 50% at hubs in the periphery, and a 50% discount will be given to the disabled and those with disabilities, and a 33% discount to young people aged 18-26. However, due to the increase, the price is expected to be higher than planned.
The Ministry of Finance says that they already contacted the Ministry of Transportation two weeks ago and warned of the increase in fares, but so far they have not received any answers. The Treasury proposed to the Ministry of Transportation to use some of the funds intended for Regev's plan to lower travel prices in the periphery, in order to moderate the expected increase, but they did not receive an answer.
The Ministry of Finance opposed Regev's plan, and believed that it would be correct to use the 360 million shekels for "service additions" - the addition of additional bus lines against the background of congestion in public transportation - thinking that what will make people switch to public transportation is the improvement of its service and the frequency of the lines. This is because according to the budget of the Ministry of Transport for the years 2024-2023 no "service additions" are planned.

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