Brazil's Rio state declares financial disaster before Games

In an official written statement published Friday, the Brazilian lawmaker warned of a "total breakdown in public security, health, education, mobility and environmental management" due to lack of resources.

"The decree authorises the competent authorities to adopt exceptional measures necessary for the rationalisation of all essential public services", it said.

There have always been concerns over Rio's readiness to host the Olympics, which are due to begin August 5.

The governor's order ends a week that saw Thomas Bach, president of the International Olympic Committee, meet with Brazil's Interim President Michel Temer in Rio de Janeiro.

Brazil's economy is floundering amid a deep recession and Rio state is in a financial crisis because of relatively low oil prices.

Police, teachers and other government workers in Rio state have seen paychecks delayed because of the cash crunch.

Rio's state government is in such dire straits that two of its hospitals were taken over by the Rio de Janeiro city government to allow doctors to keep receiving their paychecks.

Rio's state budget shows a $5.6 billion shortfall for 2016. Royalties from oil - the state's main revenue-earner - are projected to collapse from $3.5bn in 2014 to just $1bn this year.

Brazil plans to deploy around 85,000 soldiers and police during the Olympics, roughly double the number used at the London 2012 Games.

Rio 2016 Olympic medals feature the goddess Nike coming from the Panathenaic Stadium. The federal budget, however, remains very limited, with double-digit inflation and record unemployment rate hurting the country's fiscal prospects. The country's president is facing impeachment proceedings and the country is in the middle of an economic recession.

Rousseff's fate is to be decided by the Senate in the coming months, likely in the middle of August, when the Olympics will be in full swing.