Engaging in Consumption - Extra 337 million euros allocated for public transportation in Saxony.
Saxony has pledged extra funds to its local transport associations due to rising expenses in public transportation. The Saxon government plans to distribute around 337 million euros from 2024 to 2027, as per announcements made in Dresden on Thursday. These funds will be arranged by adjusting the Transport Ministry's funding regulations.
The federal government is providing these resources. It plans to allocate over 17.3 billion euros for regionalization funds from 2022 to 2031. This decision was mutually agreed upon by the federal and state governments earlier in November.
According to Transport Minister Martin Dulig (SPD), this additional funding will offer enhanced planning and financial stability to the transportation associations. These associations are currently facing immense pressure from rising expenses, including those related to energy and personnel costs. The ultimate aim of this funding is to minimize the cancelation of transportation services in the rail passenger industry.
The previously offered "apprentice ticket" is no longer available, as the number of users has significantly declined since its introduction. In March, fewer than 6,000 apprentices used this ticket, which marked a drop of nearly 70% from the previous year.
The Germany Ticket, which costs nearly the same amount, can be used across the entire country. Minister Dulig also urged more companies to contribute towards the "Germany Job Ticket". This not only provides a more economical option for their employees but also makes businesses more desirable in the job market.
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- The Ministry of Transport in Saxony is working closely with municipalities to manage the cost increase in local public transport.
- Martin Dulig, the Transport Minister of Saxony, emphasized the need for collaboration between the Transport association and employers to mitigate rising prices in Dresden.
- The allocation of 337 million euros to the Transport association will help decrease consumption of energy and personnel costs in the railroad sector.
- Consumers in Saxony may see a slight increase in fares due to the distribution of funds to the Transport association, aiming to ensure sustainable local public transport.
- Saxony's decision to adapt funding regulations for the Ministry of Transport follows discussions with the federal government, aiming to maintain the affordability of public transportation for consumers.
- The Transport association and municipalities in Saxony are hoping that this financial support will boost the usage of local public transport, thus reducing traffic congestion and promoting greener travel options.
- Despite the challenges in maintaining affordability, Martin Dulig remains optimistic about the future of the transportation sector in Saxony, encouraging employers to participate in initiatives like the "Germany Job Ticket", ultimately benefiting both consumers and the local economy.