By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – The federal government in Brazil announced R$2.9 billion-worth in financial aid to Rio de Janeiro to help the state put on the 2016 Olympic and Paralympic Games. According to officials the resources will be exclusively used to help pay for security during the events.

Chief minister of the Civil House, Eliseu Padilha, Rio 2016, Olympics, Rio de Janeiro, Brazil, Brazil News
Chief minister of the Civil House, Eliseu Padilha, speaking about the use of emergency federal funds for the Olympics, photo by Valter Campanato/Agência Brasil.

On Friday, Rio’s acting governor, Francisco Dornelles, declared that due to the ‘grave financial crisis’ there was a possibility that the state would not be able to comply with all of its obligations during the Olympic and Paralympic events.

Dornelles said there were fears ‘of a total collapse in public security, health, education and mobility’ in the next few months. The state estimates a deficit of R$19 billion this year.

Government officials stated the Medida Provisoria (decree issued by the Executive) for the financial aid to Rio for the Olympic and Paralympic Games will be treated as a subsidy, not a loan, and will not have to be paid back.

Chief of Staff, Eliseu Padilha, said that all other state governors agreed with the help given by the federal government, even though several other Brazilian states are also facing serious financial difficulties.

“Isn’t the risk of a failure bad for Brazil?” Padilha asked journalists earlier on Tuesday. “A national effort was made. The 27 governors agreeing that the Union should resolve the looming (financial) problem of Rio de Janeiro.”

Rio’s governor officially thanked interim president, Michel Temer, for the federal government’s financial support to the Rio 2016 Olympic and Paralympic Games on the state’s website page.


  1. How come the Federal Government has money to support the Olympic Games and NOT for health, education, public transport and other more essential matters?


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