Criteria for awarding disaster relief must laid down clearly

Criteria for awarding disaster relief must laid down clearly

Subject: Polity

Section: National body

Context:

• The recent spat between the Central and Tamil Nadu governments over flood relief after two spells of heavy rainfall in the State has been disheartening for those struggling to rebuild their lives.

More about News:

• The central government does not declare any natural disaster a national disaster. 
• It is only after an assessment by its team that any natural disaster is classified as a disaster of severe nature — as seen in the 2013 floods in Uttarakhand and 2018 floods in Kerala.
• In such a case, there is additional financial assistance from the National Disaster Response Fund (NDRF).
• The central government should ensure clear guidelines when it comes to relief.

Various Funds for mitigation of Disaster:

• Prime Minister’s National Relief Fund (PMNRF):
  • The Prime Minister’s National Relief Fund (PMNRF) was set up in January 1948, originally to accept public contributions for the assistance of Partition refugees.
  • It is now used to provide immediate relief to the families of those killed in natural calamities and the victims of major accidents and riots and support medical expenses for acid attack victims and others.
  • The PMNRF was originally managed by a committee which included the Prime Minister and his deputy, the Finance Minister, the Congress President, a representative of the Tata Trustees and an industry representative.
  • However, in 1985, the committee entrusted the entire management of the fund to the Prime Minister, who currently has sole discretion for fund disbursal.
  • A joint secretary in the PMO administers the fund on an honorary basis.
  • States also have similar Chief Minister’s Relief Funds.
• National Disaster Response Fund (NDRF)
  • It is a fund managed by the Central Government to meet the expenses for emergency response, relief and rehabilitation due to any threatening disaster situation or disaster.
  • It is defined in Section 46 of the Disaster Management Act, 2005.
  • It is placed in the “Public Account” of GOI under “reserve funds not bearing interest”.
  • NDRF is constituted to supplement the funds of the State Disaster Response Funds (SDRF), in case of a disaster of severe nature, provided adequate funds are not available in SDRF.
• Eligibility:
  • NDRF guidelines state that natural calamities of cyclones, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst, pest attack and cold wave and frost considered to be of severe nature by Government of India (GoI) and requiring expenditures by a state government in excess of the balances available in its own SDRF will qualify for immediate relief assistance from NDRF.
  • For availing the NDRF funds, states are required to submit a memorandum indicating the sector-wise damage and need of funds. The Centre, on its part, assesses the damage and grants the additional funds to states.
  • The financial assistance from NDRF is for providing immediate relief and is not compensation for loss/damage to properties /crops.  In other words, NDRF amount can be spent only towards meeting the expenses for emergency response, relief and rehabilitation.
  • The National Executive Committee (NEC) of the National Disaster Management Authority takes decisions on the expenses from National Disaster Response Fund.
• Sources of Financing NDRF:
  • It is financed through the levy of a cess on certain items, chargeable to excise and customs duty, and approved annually through the Finance Bill.
  • The requirement for funds beyond what is available under the NDRF is met through general budgetary resources.
• State Disaster Response Funds: 
  • It has been constituted in each State under Section 48 (1) (a) of the Disaster Management Act, 2005.
  • The fund is the primary fund available with State Governments for responses to notified disasters.
• Funding Pattern:
  • The Central Government contributes 75% to the SDRF in general States and 90% in North-East and Himalayan States.
  • The annual Central contribution is released in two equal installments as per the recommendation of the Finance Commission.
  • As per the guidelines, the funds are released on receipt of Utilisation Certificate of the amount released in the earlier instalment and receipt of a report from the State Government on the activities undertaken from SDRF.
  • However, in view of the urgency, these requirements were waived while releasing the funds this time.
  • The fund is to be used only for meeting the expenditure for providing immediate relief to the victims of notified calamities like cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst, pest attack and frost & cold wave.
  • Allocation of SDRF funds to the States is based on multiple factors like past expenditure, area, population, and disaster risk index.