Are Disasters a Risk to Regional Fiscal Balance? Evidence from Indonesia

Abstract Indonesia is an archipelago country and fairly vulnerable to disasters. While disasters generally affect government revenue expenditure, their effects likely vary by country. This study examines the effect of on fiscal balance, revenue, expenditure local governments. We used panel data fixed methods estimate degree which disaster severity influences budgetary solvency at district provincial levels in between 2010 2018. revealed that can strain balance due a decrease own-source increase social assistance capital consumption unexpected expenditure. The most threatened while also found lead financial burden delays planned projects or post-disaster reconstruction. Based these findings, it clear some forms insurance other financing schemes are necessary mitigate adverse impacts regional balance.