Rio de Janeiro's governor has declared a state of financial emergency and requested federal funds to help fulfil obligations for public services during the Olympics that start on August 5.
Emergency measures are needed to avoid "a total collapse in public security, health, education, transport and environmental management," a decree in the state's Official Gazette said on Friday.
The state's revenue, largely tied to the petroleum industry, slumped in the last two years as global oil prices collapsed.
The announcement followed this week's visit to Rio by Brazil's Interim President Michel Temer, who said the federal government would ensure all obligations are met for successful Games.
"The state's financial emergency in no way delays the delivery of Olympic projects and the promises assumed by the city of Rio," Mayor Eduardo Paes said on Twitter.
The local organising committee for the Games said the state's fiscal situation did not impact its actual running of the Olympics, which relies entirely on private funds.
While the majority of Olympic infrastructure costs have been spread across city, state and federal budgets, with some financing from private companies, the state is responsible for most day-to-day security and health services in Rio.