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.

The minister of the interior and transport, Florencio Randazzo, announced an $800 million investment over the span of a year into the Sarmiento train line in order to provide a safer service.

Starting the 30^th July for 60 days, the line between Moreno and Once will be suspended from 10pm until 4am during the week and the whole day on Sundays in order to jump start the amelioration project. The project includes massive renovations to railways, garages and platforms, modernising the signal systems as well as reparations to stations.

The responsibility of the train lines has been in contestation since the tragic Once Crash the 22nd February where 51 people were killed and over 700 were wounded. Since the crash, the contract for the Trenes de Buenos Aires (TBA) has been rescinded from the Cirigliano group and is now managed by the Operational Management Group (UGO).

The upcoming cuts to service will affect 5% of the 190,000 daily users of the Sarmiento line and the Sunday suspensions will affect 50,000 users for the day. There will also be an increase in bus services to help ease passenger congestion.

The investment proposal also comes after Metrovias announced that it would pull 20 trains from the subte.

Next week, the government plans to announce a similar investment plan of $500 million into the Mitre line.

Effective as of midnight, 16th October 2010, taxi fares have risen from $4.60 to $5.80.

The 26% tariff increase was approved by the Government of Buenos Aires in order to offset higher costs.

Upon entry of the taxi, passengers will be charged $5.80 and an additional $5.80 for every 200 meters of travel, as well as 58 cents per minute of waiting.

Vice president of the Taxi Owners Federation, Enrique Celi, announced that “today the new tariff came into effect,” and he justified the increase because “the cost of living rose, as well as the vehicle maintenance supplies and so on.”

Celi offered more facts, “The taxi service transports more than 2,500,000 people per day in the city and is not financed like the buses or the subways. The taxi owner bears all maintenance of the car which is much higher than just 26%.”

On the night of the 16th, long-lines of taxis waited to adjust their meter clocks, in accordance with the law, taxis who do not have their clock adjusted to the new rate will not be able to collect the increase and will need to continue with the old.

It had originally been announced that the increase would take place in two segments of 13% before the end of the year, however the ultimate decision came to implement a one-step tariff increase.