The Government of Nepal has identified four overarching goals for its disaster risk financing strategy. These are aligned to the 15th Development Plan which articulates a clear goal of a ‘safe and resilient Nepal from disaster risk’. Based on this overarching goal, as well as initial consultations and analysis and lessons from countries with similar risks, the following policy goals have been established to manage the finance impacts faced from climate and disaster risk in Nepal:
- maintain a sound fiscal balance at the national level, to necessitate rapid recovery when disasters occur and to safeguard development progress;
- reduce the impact of disasters on critical public services, economic activity and livelihoods, enabling resilient economic growth and development;
- to ensure pre-arranged financing mechanisms are in place at national, provincial and local levels, necessary to provide immediate liquidity at the onset of a disaster; and
- to protect the poorest and vulnerable people from falling into a cycle of poverty due to disasters and shield the near-poor from slipping back into poverty.