This disaster risk financing countrynote for Serbia provides an overview of the way itsgovernment currently finances the costs imposed by naturaldisasters. Meanwhile, poverty deepened after the financialcrisis and during the recessions of 2012 and 2014, mainlybecause of losses in employment and labor income. In aneffort to overcome its fiscal challenges, the government ofSerbia adopted an ambitious fiscal consolidation andstructural reform program to halt the rise in public debtand send it on a downward trajectory by 2017. This programis supported by a three-year stand-by arrangement from theInternational Monetary Fund (IMF). Because of the growingfrequency and severity of disasters, the government hasfaced the rising costs of responding to disasters as well asthe challenges of financing emergency response andreconstruction costs. Having sufficient access to financialinstruments and resources in order to respond to disastersis crucial for building the financial resilience of thecountry and minimizing the negative impact of naturaldisasters on Serbia’s economic growth. In this report,chapter one gives introduction. Chapter two provides thebackground and country context, including the recenteconomic impacts of disasters. Chapter three reviews thecurrent institutional and legal framework for disaster riskmanagement and financing. Chapter four is a review of thepublic financial management of disasters in Serbia,including ex ante and ex post disaster risk financing andinsurance (DRFI) instruments currently in use for budgetmobilization, and it looks at the 2014 floods in moredetail. The chapter concludes with a summary of financialresources available and a look at the potential resource gaps.
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