Published on : Saturday, June 18, 2016
Interim Governor Francisco Dornelles said that the Brazilian state is facing “serious economic crisis” and might even lead to stop the state from honouring commitments for the Games.
Rio’s city government has funded the Olympics but the state is responsible for areas such as transport and policing.
However, to tackle the emergency crisis, Interim President Michel Temer promised to provide significant financial help.
Brazil overall has faced a deep recession and tax shortfall has been marked as one of the major reasons for the crisis which specially came from the oil industry.
The measure could accelerate the release of federal emergency funds. Rio state employees and pensioners are owed wages in arrears. Hospitals and police stations have been severely affected.
The state faced “public calamity” and as per the industry leaders this could lead to “total collapse” in public services, such as security, health and education.
Amidst all these, Brazil’s Tourism Minister Henrique Alves had put his papers down due to a sweeping controversy in his involvement in a corruption scandal linking him to the state’s oil company Petrobras.
The preparations for the Olympics were already questioned as FIFA has expressed its concern over the stadiums in Brasília and Manaus which have hardly been used since the 2014 World Cup. Just not limited to football, the International Swimming Federation and the International Federation for Equestrian Sports have also complained about competition conditions.
Leonardo Espindola, chief of staff to Rio’s governor, told the Supreme Court in April that the state is on the verge of “social collapse.” State Finance Secretary Julio Bueno agrees. At the outset of an hour-long interview last month, Bueno claimed to have “the worst job in Rio de Janeiro.” “We’re unable to maintain essential services like police and health,” he said. “That’s what defines the health of a society.”