Rio state declares financial emergency, requests funding for Olympics

The acting governor of Rio de Janeiro’s state government declared a state of financial disaster Friday in an effort to change budgetary priorities without disrespecting Brazil’s fiscal laws.

In the decree, Dornelles said that the crisis “may lead to the total collapse of public security, health, education, mobility and environmental management”.

The country’s president is facing impeachment proceedings and the country is in the middle of an economic recession. Although most of the public costs for the Olympics come from the city budget and a large chunk of financing from private companies, the state is responsible for the transportation and security during the event.

There have always been concerns over Rio’s readiness to host the Olympics, which are due to begin August 5.

“I want all the people of Rio de Janeiro to understand that the state is experiencing a major financial crisis”, Dornelles said, according to Agencia Brasil.

The state government spent 9.77 billion reais ($2.8 billion), its biggest infrastructure investment in decades, on a 10-mile extension to Rio’s subway to link a series of wealthy beachside neighborhoods in time for the Olympics.

However, Rio Mayor Eduardo Paes said on Twitter the decision to declare a financial emergency won’t delay Olympic projects, and Brazil’s interim President Michel Temer has promised federal funding to help complete commitments for the games.

The local organizing committee for the Games has said that this financial crisis will not affect the actual running of the tournament.

“We knew since past year that the financial state of Rio state was critical”. Temer said federal government would ensure all obligations are met for the success of the games.

The text states that “the competent authorities shall issue normative acts necessary for the regulation of the state of public calamity, in order for the Olympics [to take place]”.