Financing Disaster Risk Reduction: The Perspective of Budget Allocation for Awareness Programs in the Merapi Volcano Community

Abstract

The increasing number of disasters and high costs of damage highlight that financing is an essential part of managing community disaster response. As the most significant spending related to a disaster occurs after the disaster strikes, it can be challenging to know how much this spending could be reduced through preparedness in disaster management. This paper discusses the budget allocation of ex-ante programs on disaster risk reduction, focusing on education, knowledge awareness, capacity building, and risk communication. Special attention is paid to budget management programs in the Merapi Volcano area. A literature review is carried out to create a profile of the budget allocation for awareness programs in the whole disaster management cycle. It is found that the budget allocation for such programs is 7% of the total budget of the rehabilitation and reconstruction project and 20%-30% of the annual budget of the Local Disaster Management Agency. The findings demonstrate a need for alternative budgeting for ex-ante programs on disaster risk reduction to accelerate the targeted outcomes.