Rio de Janeiro acting governor, Francisco Dornelles, has declared a state of financial disaster so he has more flexibility to manage the state’s scarce resources, less than two months before Brazil hosts the Summer Olympics.
The 2016 Summer Olympic Games will be held in Rio de Janeiro on August 5 to 21.
The decision was announced on Friday, and it will allow Rio’s state government to change its budgetary priorities without breeching Brazil’s fiscal laws…because when Brazilian officials do not meet their fiscal projections, coup d’etat’s can be the result.
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.”
USA Today reports…
Brazil has been in the midst of economic and political chaos leading up to the Games, which were awarded to Rio when the country was enjoying boom times.
A leading world supplier of natural resources, Brazil has suffered from a global economic slowdown, which has seen commodity prices fall sharply. The lost revenue has strained the Brazilian government’s budget, which has provided generous subsidies to low-income families under a decade of leftist rule.
Adding to the economic woes are an upheaval in the government’s leadership. President Dilma Rousseff was suspended last month by the Brazilian Senate, which will hold an impeachment trial on charges that she violated spending accounting rules.
At the same time, many of the country’s top politicians have been ensnared in a bribery corruption scandal involving the state-run oil company, Petrobras.
Corruption charges also have swirled around interim President Michel Temer, who had been vice president prior to Rousseff’s suspension, and there has been a steady shuffling of top government officials.
On Thursday, Tourism Minister Henrique Alves resigned after he was linked to the growing corruption scandal. He was the third top minister to step down in the past month.
The economic and political problems have sparked mass protests by supporters and opponents of Rousseff, and new demonstrations could pose a disruption for visitors attending the games.