Set to be hosted in Rio De Janeiro, sports fans across the region are worried over the political implications of an oil related bill that threatens both the 2016 Olympics and the 2014 World Cup. The bill puts Brazil on the razors edge, dancing between the benefits of infrastructure and tourism and the economic demands of a major industry.
Brazilian President Dilma Rousseff is under pressure to veto an oil royalty bill that will slash the revenues of Rio de Janeiro state and put the 2016 Olympics and the 2014 World Cup in peril, according to the state's governor.
The bill passed by Congress on Tuesday cuts royalty payments to governments where about 80 percent of the country's oil and natural gas is produced and shares it out more equally among Brazil's 27 states and more than 5,500 municipalities. It also redirects royalties to a national fund for social programs.
Rio de Janeiro and Espirito Santo states, which have been experiencing an oil-led boom, stand to lose most. Rio alone will lose about $2 billion in 2013 and forgo $39 billion in revenue by 2020, the state development secretariat said.
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