Natural disasters are relatively rare events that occur over short periods of time and have the potential to have significant negative economic and social impacts. Natural disasters cause economic losses and human casualties in private assets and public infrastructure. Natural disasters pose a serious threat to the stability and well-being of economies around the world. Today, natural disasters impose significant economic costs. These costs are often borne by governments in economies where private insurance markets are not well developed. Even if governments do not make an explicit commitment before a disaster, they face social and political pressure to meet the costs that arise after a disaster. These costs take the form of potential liabilities in the state budget. Disasters pose fiscal risks in terms of both public revenues and expenditures. Disasters have potentially significant impacts on public finances. They increase public spending and reduce public revenues, which in turn may result in increased domestic or foreign borrowing, significant changes in existing investments, and monetary expansion. Natural disasters also create additional pressures on public finances to the extent that governments take mitigation and preparedness measures. There is little evidence and limited policy advice in the literature on how governments should manage their potential liabilities related to disasters. Studies have shown that as GDP per capita increases, deaths from natural disasters decrease, while in terms of destroyed assets, the absolute costs are higher. This study aims to clarify the concept of potential liabilities created by natural disasters and the channels through which they can affect public finances, including fiscal risks.