Arrest of Rio de Janeiro Governor highlights deep cracks in state finances

rio de janeiro governor arrested
Governor Pezão arrives at the Federal Police headquarters in Riio

A frail economy, a bankrupt state, and a political system in tatters: welcome to Rio de Janeiro. Brazil’s second-wealthiest state is set to register primary deficits for the next decade, with a surplus estimated to happen only in 2029. Only in twenty years will Rio be capable to fully pay its debt to the federal government. The lack of money has taken its toll on every area under the state administration’s watch. Civil servants face delays in receiving their salaries, healthcare units don’t work properly, violence rates have spiked. In short, Rio de Janeiro is a mess.

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