The Brazilian state of Rio de Janeiro has declared a financial emergency less than 50 days before the Olympics.
Interim Governor Francisco Dornelles on Friday said the “serious economic crisis” threatens to stop the state from honouring commitments for the games, BBC reported.
In a decree, Dornelles said the state faced “public calamity” that could lead to a “total collapse” in public services, such as security, health and education.
He authorised “exceptional measures” to be taken ahead of the Games slated to start on August 5, that could impact “all essential public services”, but no details were given.
The state has projected a budget deficit of $5.5 billion for this year.
Interim President Michel Temer has promised significant financial help.
The governor has blamed the crisis on a tax shortfall, especially from the oil industry, while Brazil overall has faced a deep recession.
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.