Supreme Court Hearing on Karnataka’s Plea for Drought Assistance

Supreme Court Hearing on Karnataka’s Plea for Drought Assistance

Subject: Polity

Section: Federalism

• Karnataka Government’s Plea:
  • The plea, filed through advocate DL Chidananda, urges the Supreme Court to direct the Centre to release financial assistance from the National Disaster Response Fund (NDRF) for drought management.
  • It seeks a declaration that the failure to release this assistance violates the fundamental rights under Articles 14 and 21 of the Constitution.
• Violation of Laws and Acts:
  • The plea argues that the Centre’s action is violative of the Disaster Management Act, 2005.
  • It also cites violations of the Manual for Drought Management and guidelines for the State Disaster Response Fund.
• Drought Situation in Karnataka:
  • Karnataka is facing a severe drought, affecting lives and livelihoods.
  • 223 out of 236 taluks have been declared drought-affected, with significant agricultural and horticultural losses.
  • The estimated loss stands at ₹35,162 crore for the Kharif 2023 season.
• Financial Assistance Sought:
  • The state government has sought ₹18,171.44 crore from the NDRF.
  • This includes funds for crop loss input subsidy, relief for affected families, drinking water shortage, and cattle care.
• Impact on Livelihoods:
  • Agriculture, the primary livelihood source, has suffered, leading to lower yields and reduced incomes.
  • The drought has also impacted water availability for urban and rural areas.
• Obligations of the Union of India:
  • The plea highlights that under the Disaster Management Act, the Union of India is obligated to provide financial assistance to states.
  • Despite reports and assessments, the High-Level Committee has not taken action on the state’s requests.
• Impaired Fundamental Rights:
  • The petition argues that the delay in assistance has impaired the fundamental right to life guaranteed under Article 21 of the Constitution.
  • It emphasizes the urgent need for relief and support in the face of the severe drought situation.

National Disaster Response Fund (NDRF)

• Formation:
  • NCCF (National Calamity Contingency Fund) was renamed as NDRF with the enactment of the Disaster Management Act, 2005.
  • Defined in Section 46 of the Disaster Management Act, 2005.
  • Placed in the “Public Account” of the Government of India under “reserve funds not bearing interest“.
  • Public Accounts: Constituted under Article 266 (2) of the Constitution for transactions where the government acts as a banker (e.g., provident funds, small savings).
  • Expenditures from it do not require approval by Parliament.
• Role:
  • Managed by the Central Government for emergency response, relief, and rehabilitation in threatening disaster situations.
  • Supplements the State Disaster Response Fund (SDRF) in severe disasters if sufficient funds are not in SDRF.
  • SDRF is the primary fund for State governments to provide immediate relief.
• Financing:
  • Financed through a cess on specific items, chargeable to excise and customs duty.
  • Approved annually through the Finance Bill.
  • Currently, funded by the National Calamity Contingent Duty (NCCD).
  • NCCD levied on goods specified in the Seventh Schedule (manufactured or produced goods).
• Contribution:
  • Centre contributes 75% of SDRF allocation for general category States and Union Territories.
  • Centre contributes 90% for special category States/UTs (northeast States, Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir).
• Monitoring:
  • Department of Agriculture and Cooperation (under Ministry of Agriculture) monitors relief activities for drought, hailstorms, pest attacks, cold wave/frost.
  • Ministry of Home Affairs (MHA) monitors other natural calamities.
  • Comptroller and Auditor General (CAG) audits NDRF accounts.

SDRF (State Disaster Response Fund):

• Constitution:
  • SDRF has been constituted under Section 48 (1) (a) of the Disaster Management Act, 2005.
• Recommendations:
  • It was constituted based on the recommendations of the 13th Finance Commission.
• Purpose:
  • SDRF is the primary fund available with the State governments for responses to notified disasters to meet expenditure for providing immediate relief.
• Audit:
  • The fund is audited by the Comptroller and Auditor General of India (CAG) every year.
• Contribution:
  • The Centre contributes 75% of the SDRF allocation for general category States and Union Territories.
  • The Centre contributes 90% for special category States and Union Territories (northeastern States, Sikkim, Uttarakhand, Himachal Pradesh, Jammu and Kashmir).
  • The annual Central contribution is released in two equal installments as per the recommendation of the Finance Commission.
• Disasters Covered:
  • SDRF is meant for responses to a range of disasters, including Cyclone, Drought, Earthquake, Fire etc.
• Local Disasters:
• A State Government may use up to 10% 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.
• These disasters are not included in the notified list of disasters of the Ministry of Home Affairs.