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.
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