Post by account_disabled on Mar 6, 2024 19:58:45 GMT -8
In the insurance industry there is an axiom: There is no uninsurable risk, but there are risks for which people are not willing to pay the corresponding insurance premium. This is the typical case of natural disasters. If an insurance company were to sell insurance policies for earthquakes, floods or any natural disaster, the price that would guarantee the coverage of the damages would be so high that no citizen would pay it. What happens in reality is that companies sell policies at low prices and when catastrophes occur, they don't pay out. From here, the world has learned the hard lesson. The burden of natural disasters always falls on the state budget.
And due to the large size and urgent nature Cambodia Telegram Number Data of the expenditure, most of them have only one financing instrument. He is the debt. In 2005, one-third of the US budget deficit was spent on rebuilding from Hurricane Katrina. The Japanese government was forced to increase borrowing and make 3 supplementary budgets of 240 billion dollars to finance the reconstruction program from the Great Earthquake of 2011. This happens all the time. In exceptional circumstances, such as war or natural disasters, fiscal policy automatically switches to an expansionary cycle and governments deviate from the principles of discipline. Probably, this will also happen in Albania. After several years of consolidation and debt reduction, fiscal policy will change course.
Read also: No Content Available The damage bill left by the November 26 earthquake is still being assessed. But the government has given the first "hints" of the financial dimensions of the disaster. The Prime Minister announced the construction of 10,000 new apartments to house the affected families. It is not known how the government reached this figure. But if the damages on public works or emergency expenses are also calculated, then the total bill of the earthquake can go from 450 to 500 million dollars or more than 3 percent of the National Product. At best, the government can hope to secure $150 million from donations and prioritization of spending. The rest will have to be borrowed.
And due to the large size and urgent nature Cambodia Telegram Number Data of the expenditure, most of them have only one financing instrument. He is the debt. In 2005, one-third of the US budget deficit was spent on rebuilding from Hurricane Katrina. The Japanese government was forced to increase borrowing and make 3 supplementary budgets of 240 billion dollars to finance the reconstruction program from the Great Earthquake of 2011. This happens all the time. In exceptional circumstances, such as war or natural disasters, fiscal policy automatically switches to an expansionary cycle and governments deviate from the principles of discipline. Probably, this will also happen in Albania. After several years of consolidation and debt reduction, fiscal policy will change course.
Read also: No Content Available The damage bill left by the November 26 earthquake is still being assessed. But the government has given the first "hints" of the financial dimensions of the disaster. The Prime Minister announced the construction of 10,000 new apartments to house the affected families. It is not known how the government reached this figure. But if the damages on public works or emergency expenses are also calculated, then the total bill of the earthquake can go from 450 to 500 million dollars or more than 3 percent of the National Product. At best, the government can hope to secure $150 million from donations and prioritization of spending. The rest will have to be borrowed.