The Brazilian economy continues to feel the pinch of a stiff and unrelenting recession now threatening to bring about a significant downsizing to the region's carnival season, including prompting the dire downsizing of one of the country's most colorful and long celebrated events.

The Telgraph reports the ongoing recession, state of austerity and financial scandal now gripping the region has placed Brazil's annually held Rio-based flagship event in a diminished light.

Already, TV Globo, the country's most powerful broadcaster, has announced it will not be airing the final Parade of Champions as in year's past. The network also plans to make further cuts to its regular schedule of events.

A recent drought in the region causing severe water shortages and power outages in the nearby states of Sao Paulo and Minas Gerais also appears to be taking a toll. Largely as a result of those developments, council officials have canceled events once planned for as many as 20 different cities.

During the glory years, Rio's biggest street carnivals regularly attracted crowds as huge as 100,000. This year, many of the most established blocos and musical collectives have already been canceled, including the long popular Bloco Cru.

"We didn't achieve sufficient sponsorship to guarantee the party's infrastructure," organizer Lu Baratz said. "It is important that the sponsors and council do more than pay for chemical toilets. They need to support the local spirit of carnival."

After playing host to the 2014 World Cup, where many insist the immediate economic benefits to the country was only minimal, most predict the country will greatly benefit by playing host to the 2016 Summer Olympics. According to USA Today, a recent study found that after Brazil failed to rank among the world's 100 top tourism locations in 2013, and Rio only plavced at No. 92, playing host to the Olympics will elevate the region onto a top-flight tourist destination.