The Brazilian state of Rio de Janeiro on Friday declared “a state of public calamity” due to lack of state funds. Acting Rio de Janeiro Governor Francisco Dornelles stated frankly that Rio’s badly frayed finances “impede the state’s ability to meet its responsibilities related to the 2016 Olympics.” The Olympic games are due to kick off in the city of Rio de Janeiro on August 5. Dornelles said the “state of public calamity” will allow state authorities to take emergency measures regarding state services and salaries. He said the state will be obliged to “ration” its funds in efforts to meet the needs of the Olympics. He said state revenues have dwindled in recent years because of a broad nationwide recession and a sharp decline in international oil prices. Rio de Janeiro receives a portion of its revenues from royalties on oil drilled offshore.
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