NATIONAL DISASTER RESPONSE FUND - GOVERNANCE

News: Karnataka Approaches Supreme Court Over Funds for Drought Management

 

What's in the news?

       The Karnataka government has approached the Supreme Court requesting a directive to the Centre to disburse financial aid from the National Disaster Response Fund (NDRF) to the state for managing drought conditions.

 

National Disaster Response Fund (NDRF):

       It is defined in Section 46 of the Disaster Management Act, 2005.

 

Management:

       Managed by the Central Government to cover emergency response, relief and rehabilitation expenses during threatening disaster situations.

 

Purpose:

       Constituted to supplement State Disaster Response Funds (SDRF) in case of severe disasters.

 

Composition:

       Placed in the “Public Account” of the Government of India (GOI) under “reserve funds not bearing interest,” allowing the government to access funds without parliamentary approval.

 

Eligibility and Coverage:

       Covers natural calamities like cyclones, earthquakes, floods, and man-made disasters such as terrorist attacks or chemical incidents.

       Requires a memorandum from states detailing damage for availing funds, which are granted by the Centre after damage assessment.

 

Decision Making and Accountability:

       The National Executive Committee (NEC) of the National Disaster Management Authority decides on fund allocation.

       NDRF accounts are audited annually by the Comptroller and Auditor General (CAG).

 

Sources of Financing:

       Financed through a cess on certain excise and customs duty items, approved annually.

       Additional fund requirements met through general budgetary resources.

 

Utilization and Limitations:

       Financial assistance is for immediate relief, not compensation for property damage.

       Not used for disaster preparedness or mitigation.