The Financial Impact of Natural Disasters on Local Government: A Case Study Approach

Natural disasters pose a significant threat not only to human life and infrastructure but also to the fiscal stability of local governments. This paper investigates the financial implications of natural disasters on municipalities, with a focus on emergency spending, infrastructure rehabilitation costs, revenue shortfalls, and long-term economic recovery. A case study of a mid-sized Greek municipality affected by a major flood event in 2023 is presented. The study employs both qualitative and quantitative methodologies, using budget reports, financial statements, and stakeholder interviews. Results highlight the pressing need for disaster risk reduction (DRR) investments and more resilient fiscal frameworks at the municipal level.