The Rio state government has declared a state of financial disaster as the 2016 Rio Olympics are quickly approaching in August.
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A government official told the Reuters news agency on Saturday that the funds would be used to pay for security personnel and finish a much-delayed metro line to the Olympic venue.
“These are the two biggest problems going into these games”, he added, noting, however, that other “underlying problems” in the health sector and city policing “won’t get solved by that injection of cash”.
In a decree, Mr. Dornelles said the state faced “public calamity” that could lead to a “total collapse” in public services, such as security, health and education.
He said in a translated statement that he hopes the decree will “draw the attention of every citizen to the financial difficulties experienced by the state”.
The Guardian suggests declaring a state of emergency could be more of a “political tactic” since it allows the governor to borrow funds without the approval of the state legislature.
Brazil’s economy is floundering amid a deep recession and Rio state is in a financial crisis because of relatively low oil prices.
On Wednesday, Fitch Ratings downgraded Rio’s debt rating to “B-” from “B+”, saying the state was suffering “a fast-deteriorating liquidity position”. Rio state employees and pensioners are owed wages in arrears. And the government is confronted with double-digit inflation, unemployment at a record 11 percent.
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Mayor Eduardo da Costa Paes said the state of emergency would not stop the city from hosting the Olympics Aug. 5-21.
