DISASTER RISK FINANCE INSTRUMENTS: BUDGET REALLOCATIONS

To meet post-disaster costs for recovery and reconstruction, government agencies can request budget allocations through the regular budget process, use some of their existing budget lines, use savings, or modify the issued allocations. While reallocation will likely be the first funding available to government agencies (and in many cases the only funding available), it can have a very negative impact on planned
development priorities.
When considering the use of the regular budget for disaster response, the government should also pay particular attention to the necessary budget management, reporting, and control mechanisms to ensure efficient use of funds even during a crisis period.