Brazil's Rio Grande do Sul state government has signed agreements for road projects that will end up costing 186mn reais (US$113mn) more than the available budget for 2011, according to the office of the new state governor, Tarso Genro.
During 2010, former governor Yeda Crusius signed contracts with 150 municipalities that call for some 200mn reais in funding from the state's national highway department, Daer, paper Correio do Povo reported.
However, Daer has said that only 14mn reais is available for the year, according to the report.
"Many things are being signed without a budget and this will merit an analysis by the state audit court (TCE)," state infrastructure and logistics secretary Beto Albuquerque was quoted as saying.
An analysis of the situation will be forwarded to TCE, which may back the decision to cancel some of the contracts.
Bordering Argentina and Uruguay, Rio Grande do Sul is the southernmost state in Brazil. State governor Tarso Genro took office on January 1.