Read the text below entitled “Facing headwinds, Dilma changes course” so as to answer question:
Facing headwinds, Dilma changes course
Source: www.economist.com (Adapted)
Aug 18th, 2012
The government announces plans to privatise infrastructure, and disappoints striking bureaucrats. In recent years Brazil's government has been able to avoid tough spending choices. Faster economic growth and falling tax evasion have translated into steadily rising revenues, allowing the federal government to hire more workers and pay them more, as well as to boost pensions and social transfers. But the fat times are over. In 2011 economic growth was only 2.7%; this year 2% looks optimistic. Tax revenues are rising only a little faster than infl ation. The government can no longer satisfy everyone.
The noisiest demands come from public-sector
workers. Teachers at federal universities have been on strike
for three months; they have recently been joined by federal
police, tax offi cials and staff at some regulatory agencies.
The strikers'demands would swell the government's salary
bill by up to 50%; infl ation is running at 5.2%.
According to paragraph 1,