The acting governor of Rio de Janeiro’s state government declared a state of financial disaster Friday in an effort to change budgetary priorities without disrespecting Brazil’s fiscal laws.
Francisco Dornelles’ move will let him adopt exceptional measures to pay costs related to the upcoming Olympic Games as the state grapples with the country’s steep economic recession.
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.” He said the state is facing a “public calamity.”