Kerala’s Fund Utilization for Disaster Relief under Scrutiny

Kerala’s Fund Utilization for Disaster Relief under Scrutiny

Sub : Polity

Sec :Msc

Why in News

The Bhartiya Janata Party has alleged that the Kerala government has failed to effectively utilize the funds allocated by the Central government for disaster relief. This issue has drawn attention after the Kerala High Court criticized the State government for lapses in fund management and rehabilitation of landslide survivors in Wayanad.

Background:

• Kerala government of not utilizing the substantial funds allocated by the Centre under:
  • State Disaster Response Fund (SDRF)
  • National Disaster Response Fund (NDRF)
  • Regular relief packages.
• The Centre claims it has allocated over ₹500 crore through SDRF for disaster relief in the state.

National Disaster Response Fund (NDRF):

• Defined under Section 46 of the Disaster Management Act, 2005.
• Provides financial assistance for emergency response, relief, and rehabilitation during disasters of severe nature.
• Managed by the Central Government and placed in the Public Account of India under “reserve funds not bearing interest.”
• Usage:
  • Funds are allocated for immediate relief and emergency measures.
  • Not used for disaster preparedness, reconstruction, or mitigation.
  • Activities like preparedness are financed through schemes like NDMF, NCRMP, and NFMP.
• Eligibility:
  • Covers natural calamities (cyclones, floods, earthquakes, etc.) and certain man-made disasters (terrorist attacks, chemical, biological, or nuclear disasters).
  • States must submit a memorandum of damages; funds are allocated based on central assessment.
• Sources of Financing:
  • Financed by a cess on specific items, approved via the Finance Bill.
  • Additional requirements are met through budgetary allocations.
• Administration: Decisions on fund use are made by the National Executive Committee (NEC) of the National Disaster Management Authority (NDMA).
• Audit: Annually audited by the Comptroller and Auditor General (CAG) of India.

State Disaster Response Fund (SDRF):

• Constituted under Section 48 of the Disaster Management Act, 2005.
• Primary fund available with state governments for disaster response and relief.
• Financing:
  • Funded in a 75:25 ratio by the Centre and States (90:10 for NE and hilly states).
  • Allocations are based on the Finance Commission’s recommendations.
• Usage:
  • Covers natural disasters like floods, earthquakes, and droughts.
  • Can be used for immediate relief and response activities.
  • 10% of the annual allocation is earmarked for local-level disaster preparedness.