Centre releases disaster relief funds for Karnataka and T.N.
Context:
Recently, the Union government has sanctioned ₹3,730.32 crore from the National Disaster Response Fund (NDRF) for relief assistance to Tamil Nadu and Karnataka.
Relevance:
GS-02 (Government policies and interventions)
Key Highlights:
- Karnataka received ₹3,454.22 crore for drought relief in 2023, while Tamil Nadu received ₹115.49 crore for Cyclone Michaung damage and ₹160.61 crore for floods in December 2023.
- The Karnataka government moved the Supreme Court on March 23, seeking drought relief funds release from the Union government.
- Similarly, the Tamil Nadu government moved the Supreme Court on April 3 for the release of funds from the Centre.
- The order also mentions the allocation of ₹44.60 crore (Karnataka) and ₹406.57 crore (Tamil Nadu) from the State Disaster Response Fund (SDRF) accounts.
- Under Section 46 of the Disaster Management Act, 2005, the NDRF supplements the SDRF in cases of severe disasters if adequate funds are not available in the SDRF.
NDRF:
- The National Disaster Response Fund (NDRF) is established under Section 46 of the Disaster Management Act, 2005, managed by the Central Government.
- It is designated for emergency response, relief, and rehabilitation in the event of threatening disaster situations or actual calamities.
- The NDRF supplements State Disaster Response Funds (SDRF) during severe disasters when sufficient funds are unavailable in the SDRF.
- Funds from the NDRF are deposited in the “Public Account” of the Government of India under “reserve funds not bearing interest,” eliminating the need for parliamentary approval for withdrawals.
- Eligibility for NDRF assistance includes natural disasters like cyclones, droughts, earthquakes, floods, and man-made disasters such as terrorist attacks or chemical incidents, deemed severe by the Government of India.
- States seeking NDRF funds must submit a memorandum detailing damage and financial requirements, evaluated by the Centre for additional disbursements.
- NDRF funds are strictly for immediate relief purposes and not as compensation for property or crop losses.
- The NDRF does not cover disaster preparedness, restoration, reconstruction, or mitigation activities, which fall under other schemes like the National Disaster Mitigation Fund (NDMF) or National Cyclone Risk Mitigation Project (NCRMP).
- Financing for the NDRF primarily comes from a cess on select items subject to excise and customs duties, approved annually through the Finance Bill.
- If the need exceeds available NDRF resources, general budgetary allocations cover the deficit.
- Decisions on NDRF expenses are made by the National Executive Committee (NEC) of the National Disaster Management Authority.
- The NDRF accounts are audited annually by the Comptroller and Auditor General (CAG).
