NDRF & SDRF

  • November 14, 2020
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Subject: Disaster Management

Context: Union Home Ministry releases 4382 Crore Rupees to six states under National Disaster Response Fund.

Concept:

National Disaster Response Fund:

  • Defined under sec 46 of Disaster Management Act, 2005 (DM Act).
  • It is a fund managed by the Central Government for meeting the expenses for emergency response, relief and rehabilitation due to any threatening disaster situation or disaster.
  • Constituted to supplement the funds of the State Disaster Response Funds (SDRF) of the states to facilitate immediate relief in case of calamities of a severe nature.
  • National Calamity Contingency Fund (NCCF) was renamed as National Disaster Response Fund (NDRF) with the enactment of the Disaster Management Act in 2005.

What is it to be used for?

  • NDRF amount can be spent only towards meeting the expenses for emergency response, relief and rehabilitation.
  • For projects exclusively for the purpose of mitigation, i.e, measures aimed at reducing the risk, impact or effect of a disaster or threatening disaster situation a separate fund called National Disaster Mitigation Fund has to be constituted.

Sources of Financing NDRF:

  • 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.
  • Currently, a National Calamity Contingency Duty (NCCD)is levied to finance the NDRF and additional budgetary support is provided as and when necessary.
  • A provision also exists in the DM Act,2005 to encourage any person or institution to make a contribution to the NDRF.

Key features of NDRF:

  • Located in the “Public Accounts” of Government of India under “Reserve Funds not bearing interest“.
  • Department of Agriculture and Cooperation under Ministry of Agriculture (MoA) monitors relief activities for calamities associated with drought, hailstorms, pest attacks and cold wave /frost while rest of the natural calamities are monitored by Ministry of Home Affairs (MHA).
  • Comptroller and Auditor General of India (CAG)audits the accounts of NDRF. 

State Disaster Response Fund (SDRF):

  • SDRF has been constituted by each state under the provisions of Disaster Management act 2005.It was constituted based on the recommendations of the 13th Finance Commission.
  • The government of India contributes 75% and 90% of the total yearly allocation of SDRF to general states and special category states respectively.
  • The state executive committee headed by the Chief Secretary is authorized to decide on all matters relating to the financing of the relief expenditure from the SDRF.
  • Disaster (s) covered under SDRF: Cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloudburst, pest attack, frost and cold waves.
  • Local Disaster: A State Government may use up to 10 percent of the funds available under the SDRF for providing immediate relief to the victims of natural disasters that they consider to be ‘disasters’ within the local context in the State and which are not included in the notified list of disasters of the Ministry of Home Affairs
  • State Government has to list the State specific natural disasters and notify clear and transparent guidelines for such disasters with the approval of the State Authority, i.e., the State Executive Authority (SEC).

Features of SDRF:

  • SDRF is located in the ‘Public Account’ under ‘Reserve Fund’. (But direct expenditures are not made from Public Account.)
  • State Government has to pay interest on a half yearly basis to the funds in SDRF, at the rate applicable to overdrafts.
  • The aggregate size of the SDRF for each state, for each year, is as per the recommendations of the Finance Commission.
  • The share of GoI to the SDRF is treated as a ‘grant in aid’.
  • The financing of relief measures out of SDRF are decided by the State Executive Committee (SEC) constituted under Section 20 of the DM Act. SEC is responsible for the overall administration of the SDRF.
  • However, the administrative expenses of SEC are borne by the State Government from its normal budgetary provisions and not from the SDRF or NDRF.
  • Ministry of Home Affairs is the nodal ministry for overseeing the operation of the SDRF and monitors compliance with prescribed processes.
  • Comptroller and Auditor General of India (CAG) audit the SDRF every year.

Right to work:

Context: The lockdown enforced to control COVID-19 led to huge job losses. In this context, MNREGA and Right to Work has become very important.

Concept:

Status of Right to Work:

  • The Universal Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights, both of which were acceded by India, in Article 23 and Article 6 respectively, recognise the right to work in an employment of one’s choice and the State’s responsibility to safeguard this right.

Right to Work in Indian Constitution:

  • The Indian Constitution does not explicitly recognise the ‘right to work’ as a fundamental right.
  • It is placed in Part IV (Directive Principles of State Policy) of the Constitution under Article 41, which hence makes it unenforceable in the court of law.
  • Hon’ble Supreme Court in Olga Tellis & Ors. v Bombay Municipal Corporation & Ors recognised ‘right to work’ as a fundamental right inherent in the ‘right to life’.

MNREGA

  • The Act guarantees the right to work to by providing 100 days of guaranteed wage employment in a financial year to every rural household whose adult members are willing to do unskilled manual work.
Disaster Management NDRF & SDRF