Fiscal Buffers for Natural Disasters in Pacific Island Countries

Pacific island countries (PICs) are vulnerable severe natural disasters, especially cyclones, inflicting large losses on their economies. In the aftermath of disasters, PIC governments face revenue losses and spending pressures to address post-disaster relief and recovery efforts. This paper estimat...

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Bibliographic Details
Main Author: Nishizawa, Hidetaka
Other Authors: Roger, Scott, Zhang, Huan
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2019
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a Vanuatu 
653 |a International relief 
653 |a Budget Systems 
653 |a Public finance & taxation 
653 |a Natural Disasters and Their Management 
653 |a Natural Disasters 
653 |a Environment 
653 |a Disaster aid 
653 |a Climate 
653 |a Fiscal Policy 
653 |a Budget planning and preparation 
653 |a Exports and Imports 
653 |a Fiscal policy 
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653 |a Global Warming 
653 |a Foreign Aid 
653 |a Budget 
653 |a Expenditures, Public 
653 |a Foreign aid 
653 |a Macroeconomics 
653 |a Fiscal space 
653 |a Public financial management (PFM) 
653 |a Budgeting & financial management 
653 |a National Budget 
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520 |a Pacific island countries (PICs) are vulnerable severe natural disasters, especially cyclones, inflicting large losses on their economies. In the aftermath of disasters, PIC governments face revenue losses and spending pressures to address post-disaster relief and recovery efforts. This paper estimates the effects of severe natural disasters on fiscal revenues and expenditure in PICs. These are combined with information on the frequency of large disasters to calculate the rate of budgetary savings needed to build appropriate fiscal buffers. Fiscal buffers provide self-insurance against natural disaster shocks and facilitate quick disbursement for recovery and relief efforts, and protection of spending on essential services and infrastructure. The estimates can provide a benchmark for policymakers, and should be adjusted to take into account other sources of financing, as well as budget risks from less severe as well as more frequent disasters