CENTRE'S DISASTER RELIEF
FUNDS - GOVERNANCE
News: Why Tamil Nadu is claiming
disaster relief funds from the Centre
What's in the news?
●
The Tamil Nadu Government has filed a suit in the
Supreme Court, accusing the Centre of withholding National Disaster Relief
Funds (NDRF) following Cyclone Michaung and floods in December 2023.
Assistance Mechanisms
for States During Natural Disasters:
●
Natural disaster assistance mechanisms are governed
by the Disaster Management Act, 2005, which
defines disasters as significant events causing extensive loss of life,
property damage, or environmental degradation beyond the community's coping
capacity.
●
The Act established the National Disaster
Management Authority (NDMA) and
State Disaster Management Authorities (SDMAs)
to coordinate disaster response efforts at the national, state, and district
levels.
Financial Assistance:
States receive financial assistance for disaster relief from two main
sources such as
●
State Disaster Relief Fund (SDRF)
●
National Disaster Relief Fund (NDRF)
Release of Funds from
the NDRF:
●
The National Disaster Response Fund (NDRF),
previously known as the National Calamity Contingency Fund (NCCF), is managed
by the Central Government to address
emergency response, relief, and rehabilitation needs during severe disaster
situations.
●
States can request assistance from the NDRF when
faced with calamities beyond their coping capacity and insufficient funds in
their SDRF.
●
The Ministry
of Home Affairs (MHA) or the Ministry of Agriculture evaluates the situation and may form an Inter-Ministerial Central
Team (IMCT) to assess the need for additional funding.
●
A sub-committee
of the National Executive Committee determines the funding allocation, and
a high-level committee chaired by the
Home Minister authorizes the release of NDRF funds based on
recommendations.
State Disaster Relief
Fund (SDRF):
●
The SDRF, constituted under Section 48 (1) (a) of
the Disaster Management Act, 2005, is the primary fund available to state
governments for immediate relief efforts in notified disasters.
●
Audited annually by the Comptroller and Auditor General of India (CAG), the
SDRF is financed by both the central and state governments.
●
The central government contributes 75% of the
allocation for general category states and union territories, and 90% for
special category states and union territories (such as northeastern states,
Sikkim, Uttarakhand, Himachal Pradesh, and Jammu and Kashmir).
●
SDRF funds are utilized for various disasters including cyclones, droughts, earthquakes,
floods, landslides, and other calamities, as well as local disasters not listed by the Ministry of Home Affairs.