NATIONAL
DISASTER RESPONSE FUND - GOVERNANCE
News:
Karnataka Approaches
Supreme Court Over Funds for DroughtManagement
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.