Damages Caused by Natural Disasters and the Number of Natural Calamities’ Effect on Philippine Government’s Spending on Disaster Management

Abstract

This study examines the relationship between the damages caused by natural disasters and the Philippine government's spending on disaster management and healthcare, especially that despite the country's exposure to natural disasters, the Philippine government significantly decreased its disaster funds for the 2020 national budget. Several studies have concluded that most of the local government units in the Philippines were evaluated as only 'partially prepared' when it comes to disaster preparedness. As part of the Pacific Ring of Fire, an average of 7.5 typhoons and increased exposure to earthquakes are experienced in the Philippines annually, which should make public spending on disaster management and healthcare a national priority. Results show that disaster management expenditure and economic losses are positively related, while no relationship exists between disaster management expenditure, and deaths and exposure. Meanwhile, healthcare spending and deaths are negatively related, healthcare spending and economic damages are positively related, and healthcare spending and exposure have no relationship.