The Brazilian budget for 2002
The Brazilian government is expected to "make a significant
cut" in the 2002 budget because revenues are not expected to match all
Brazilian spending needs this year. The Brazilian
Planning Ministry, which is due to release a detailed spending program
later today, could announce spending cuts of up to R$10 billion ( $1 =
R$2,39). The Brazilian budget shortfall is actually
R$ 14,6 billion, and stems mainly from a rise in personal income tax
brackets, funding requests by congressmen, and the minimum wage hike,
among other factors.According to the text, one of the factors affecting the budget is
a) the increase of the minimum wage.
b) the rise in employment levels.
c) the reduction in exports.
d) the cuts in interest rates.
e) the Brazilian market reaction.