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São Paulo Adds R$665.6M in October Bus Subsidy Top-Ups, Second This Month
The city released another R$393.86 million in bus-fare subsidy credits on October 16, bringing October's total reinforcements to R$665.61 million — about 10.7% of the original 2026 budget.
Why it matters
São Paulo's city government has topped up bus-fare subsidies for the second time in October: Mayoral Decree No. 65.627, signed October 15 and published in the Diário Oficial on October 16, released another R$393,857,057.20 in subsidy credits. Together with the R$271,757,425.72 added by Decree No. 65.616 on October 5, October's total reinforcements reach R$665,614,482.92 — about 10.7% of the original 2026 budget of R$6.225 billion.
The details
The subsidies cover the gap between regulated fares and actual operating costs, and are the city's main tool for keeping fares stable. From 2017 to 2025, bus subsidies grew from about R$2.9 billion to R$7.12 billion — a 145.5% nominal increase versus 50.6% IPCA inflation over the same period, or roughly 63% in real terms (based on SPTrans annual reports, official city statements and IBGE data).
The proposed 2027 budget allocates R$7.347 billion for bus subsidies, plus R$2.19 billion for fleet electrification and management and R$500 million for biomethane vehicle renewal.
Context
Subsidy spending has long outpaced inflation, making it one of the biggest pressures on São Paulo's municipal finances. Two reinforcements in a single month point to a widening operating gap under the fare-freeze policy.
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