The acting governor of Rio de Janeiro state has declared a state of financial disaster so he has more leeway to manage the state’s scarce resources less than two months Brazil hosts the Olympic Games.
Francisco Dornelles announced the decision on Friday. It will allow Rio’s state government to change its budgetary priorities without disrespecting Brazil’s fiscal laws.
The move will let Dornelles adopt exceptional measures to pay costs related to the Games as the state grapples with the country’s economic recession.
The 2016 Summer Olympic Games will be held in Rio de Janeiro on Aug. 5-21.
Dornelles’ office said in a statement that the decision was made because a dip in revenues from taxes and oil royalties was “stopping the state of Rio de Janeiro from honoring its commitment to the organization of the Olympic and Paralympic Games.”
“The financial crisis has brought several difficulties in essential public services and it could cause the total collapse of public security, health care, education, urban mobility and environmental management,” the statement said.