Brazil’s Acting President OKs Transfer of $849 Million to Rio de Janeiro State

Paul Kiernan and Paulo Trevisani – The Wall Street Journal, 06/22/2016

RIO DE JANEIRO—Acting Brazilian President Michel Temer authorized on Tuesday the transfer of 2.9 billion reais ($849.0 million) from the federal government to Rio de Janeiro state, which is struggling with a fiscal crisis less than two months before the Olympic Games.

Rio declared a “public calamity” last week as a result of its deteriorating finances, which have forced deep cuts to crucial services such as education, health care and policing in recent months.

According to a presidential decree published late Tuesday, the transfer is to be used for public security during the Olympics and Paralympics, set to be held in August and September, respectively. But according to a communications official in Brazil’s presidential palace, it should free up funds within Rio’s state budget to pay for other obligations.

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