Andrés Velasco: 2% constitutional fund could be used for Transantiago

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SANTIAGO.- The Minister of Finance, Andrés Velasco, has denied ever being opposed to the possible use of the denominated "constitutional 2%" as a way to support Transantiago. With his statement, the minister has contradicted previous indications from La Moneda that portrayed him as taking a stance against using the fund.

"It is not true. It is that simple. If you read the Constitution, you will see very clearly that there is a possibility of using 2% of a total amount authorized by the Budget Law, to tend to urgent necessities", Velasco said yesterday just minutes before the Constitutional Tribunal ruled that the International Development Bank (IBD) and BancoEstado loans proposed for the transport system were unconstitutional.

Faced with a lack of resources, as well as the processing of a bill to offer a permanent subsidy for Transantiago and public transportation systems outside of the capital, the government is considering possibly resorting to the 2% of the Budget to obtain the necessary financing.

Velasco indicated that the argument to request this 2%, according to the grounds for doing so established in the Constitution would be: the necessity to maintain the operation of public services. "The public transportation system of a city like Santiago certainly cannot afford to be paralyzed", he declared.