The state’s official Gazette is now warning of “a total collapse in public security, health, education, transport and environmental management” that can only be avoided by emergency measures.
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By declaring itself in a financial emergency, the state of Rio de Janeiro can now get its hands on extra funds from the federal government without the need to win support from state legislatures and parliaments.
“Any institutional instability would hurt the country’s image”, said the decree, signed by acting governor Francisco Dornelles.
The governor has blamed his state’s financial crisis on the impact the global oil crash has had on tax revenues, while Brazil has battled worsening recession.
After much pleading, Rio received almost $300 million from the federal coffers to extend its metro network to link the main Olympic zone of Barra da Tijuca with the chic Ipanema district.
“I hope that the federal government works together especially in the areas of public safety, health care, transportation which are very important issues for Rio de Janeiro”, he said. Retirees have protested because of unpaid pensions. The August 5-21 Olympics and September 7-18 Paralympics in Rio de Janeiro will be the first to be held in South America.
“We knew since previous year that the financial state of Rio state was critical”, said Rio 2016 executive director of communication, Mário Andrada. However, the tumbling price for oil has hit state finances, causing Rio to inch further and further into the red.
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More than 10,000 athletes and half a million tourists are expected to arrive in Brazil for the Olympics, which has coincided with a political crisis and one of the country’s worst recessions. And the government is confronted with double-digit inflation, unemployment at a record 11 percent.
