Economy Minister Hernán Lorenzino delivered the 2013 budget proposal to Congress today, giving the nation a peek into the executive branch’s vision for the coming year.

The proposal predicts an exchange rate of $5.10 to the dollar, growth at 3.4%, and growth in investment at 7.4%. The official inflation rate is estimated to hit 10.7% by the end of 2012 and 10.8% in 2013. Tax revenue is expected to total over $822bn, a 22.7% increase from 2012, reflecting at least in part, a rise in inflation. The trade surplus, according to official estimates, will be more than US$13bn.

The current policy of paying off foreign debt with reserves will be continued up until US$7.8bn. This cap exceeds the US$5.7bn paid in 2012 by 40% and 2011’s US$7.5bn by 5%.

Agustín Rossi, Congressional Head of the Frente para la Victoria (FPV), the same party to which President Cristina Fernández de Kircher belongs, was optimistic about the proposal. He applauded the continuation of “social investment” and debt reduction, and commented that the proposal used a “level of reasonable expectations” for growth. He predicted the Budget and Treasury Commission would begin to consider the proposal next Wednesday and that by late October, the congressional Lower House would have approved it and passed it to the Senate.

Treasury Minister for the Buenos Aires Néstor Grindetti announced this morning that the city’s 2013 budget will not include subsidies for the capital’s subway system (“the Subte”).

The news comes just ten days after a similar announcement from the national government stating that it will not dedicate funds to Subte subsidies in its 2013 budget either.

Grindetti explained that the city is not bound by any formal obligation to provide funding for the system. Furthermore, “we don’t have any motivation for incorporating that budget item,” he continued.

To questions regarding the possibility of an increase in fare, Grindetti responded, “the federal government will have to decide that.” Authority over the Subte has been in question—and controversy—since January when the state and city began planning a transfer of control. Conflict over each party’s ability to fund the system has significantly hindered management ever since.

During the initial transfer process in January, the federal government decided to retract funding that had been supporting 50% of the Subte’s operating costs, a move that saved the government $60m monthly. Upon assuming management of the system, Buenos Aires chose to raise the $1.10 fare by 127% to its current price, $2.50.

Without Buenos Aires’ supplementary $30m per month, the transportation company Metrovías will have to find another way to finance the subterranean system. Speculations on price increases suggest a $3.90 fare, though those calculations do not take into account inflation nor wage hikes. Mayor Mauricio Macri has been quoted last month as claiming that a trip on the Subte should cost $5.50.

Any changes in fare are likely to occur at the beginning of the year, when the new budget takes affect.