Parliamentary Budget Office issues warnings on economic effects of natural disasters
[Intime News]
The Parliamentary Budget Office sounded a warning on the fiscal and wider economic effects of natural disasters in its report for the second quarter of 2023, arguing that the role of the state must be strengthened, but also that “there is much room for improvement in its efficiency.”
The report implicitly expresses reservations about shifting a significant part of the responsibility to insurance companies.
It notes that citizens’ protection of life and property is a fundamental obligation of the state and it is doubtful whether private insurers, despite their positive role in covering risks, could fully cover disasters of such scale.
