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08 November 2012
BRASIL : Rio State Governor Throws Fit Over 6% Budget Cut; Threatens 2014 World Cup/Olympics.
2012-11-07/rio-says-world-cup- a-bust-as-congress-strips- state-of-taxes-2-.html
Let the budget games begin!
Rio state Governor Sergio Cabral is upset that Congress has passed a law that strips away 6% of his budget/$2 billion...by redistributing oil royalty payments.
He claims that new cuts endanger Rio's 2014 World Cup and the 2016 Olympics construction.
The $13.5 billion stadium and infrastructure improvements are already behind schedule.
Cabral told reporters: 'It's absolutely not viable. We are going to close the doors. We won't do the Olympics, we won't do the Cup.'
The bill must still be signed by President Rousseff.
An analyst says: 'She's between a rock and a hard place, having to choose between upsetting a few close allies and a lot of non-producing states. This battle won't be over soon.'