The financial pinch resulted in a 30% cut in the state’s security budget – just as Rio has seen a jump in homicides and assaults in recent months, raising concerns about safety ahead of the Olympics.
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Brazil is in an economic recession, and Rio de Janeiro has been hit particularly hard partially due to a slump in the oil market.
An official government gazette released yesterday read that severe economic crisis has prevented the state from “honoring its commitments to the organization of the Olympic and Paralympic Games”, reports CNN.
The local organizing committee for the games also said the state’s fiscal situation did not impact its actual running of the Olympics as that relies entirely on private funds.
The state has delayed some pension and salary payments since late past year, also closing schools and medical facilities that lacked vital supplies.
The crisis has even impacted on the new metro line the state government is funding for the Olympics, which will now be ready just days before the games begin and will operate on a limited service.
A decree of “public calamity” provides a “blank check” for regional authorities to draw emergency loans from the central government without approval by the National Assembly, according to Luiz Paulo, president of the state legislature’s revenue commission. “The government has already met all of its obligations with us”.
The Brazilian government plans to transfer 2.9 billion reais ($849 million) in emergency funds to the state of Rio de Janeiro to pay for infrastructure and security during the Olympic Games, a government official told Reuters on Saturday.
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“Therefore, I wish to renew confidence that we’ll put on some exceptional Games!” he added. Temer visited the state last week and ensured that the federal government would help ensure all needs are met.
