With the 2016 summer Olympics fast approaching, the Brazilian state of Rio de Janeiro has declared a financial emergency. The state governor has requested additional federal support to honour its commitments for public services during the Olympic Games, which is set to begin on 5 August.
The states official Gazette said that financial emergency measures are required to avoid a total collapse in public security, health, education, transport and environmental management, Reuters reported.
Although most of the public funding for the Games is sponsored by the Rio city government and some finances from private companies, the state is responsible to fund the day-to-day transport and security services during the event.
Acting Governor Francisco Dornelles said, Any institutional instability would hurt the countrys image. Brazils interim President Michel Temer too promised to take exceptional measure to ensure the financial crunch does not hamper the South American country from hosting the event.
The Rio state has projected a budget deficit of $5.5bn (£3.9bn) for 2016 and it has been downgraded several times.
The financial shortage has raised questions about the states competency to host the Games, especially since Brazil has faced the deepest recession in over 80 years. The states income is heavily based on the petroleum industry and the plunge in oil prices globally has worsened the financial situation.
Further, the South American country on the whole has been grappling with a political crisis following the impeachment of its president Dilma Rouseff. Besides, corruption scandals, delayed pensions and salary payments to government employees, schools and colleges without adequate supplies and the outbreak of Zika virus has added to the countrys long lists of troubles.
However, Mayor Eduardo Paes posted a reassuring tweet that said lack of money will not affect the functioning of the Games. The states financial emergency in no way delays the delivery of Olympic projects and the promises assumed by the city of Rio.
