Budget Secretary Benjamin Diokno told representatives of the International Monetary Fund (imf) and the World Bank (wb) the timely release of post-disaster financing facilities is crucial in mitigating the short and long-term costs of natural and man-made disasters.
Diokno formed part of the Philippine delegation to the imf-WB annual meetings in Bali, Indonesia where he highlighted the country’s disaster risk financing and insurance (DRFI) experience.
“The Philippine government recommends combining different risk financing instruments to protect against events of different frequency and severity,” he said. “Risk layering ensures that cheaper sources of money are used first, with the most expensive instruments used only in exceptional circumstances.
The Budget chief further said the government’s standby loan facility providing quick post-disaster liquidity in addition to the parametric insurance policy secured by the Bureau of Treasury from the state-run Government Service Insurance System.
This insurance policy grants payouts without requiring post-disaster loss assessment. It is triggered by the modeled losses generated using the country’s catastrophe risk model.
Diokno also cited several budgetary instruments put forward by the government to utilize after major disaster events, such as the National Disaster Risk Reduction and Management Fund, Quick Response Fund and Local Risk Reduction and Management Fund.
He likewise cited the necessity of harmonizing all efforts from agencies involved in disaster risk reduction and management.
With these efforts, a nationwide investment program addressing climate change, the Risk Resiliency Program, was developed by the administration involving various agencies that adopted the Program Convergence Budgeting policy of the Department of Budget and Management.