NATIONAL DISASTER RESPONSE FUND (Syllabus: GS Paper 3 – Disaster Management)

Context: Recently, the Union government released ₹3,730.32 crore from the National Disaster Response Fund (NDRF) to Karnataka and Tamil Nadu for "relief assistance for natural calamities."

National Disaster Response Fund (NDRF)

• Formation: In 2005, the National Disaster Contingency Fund (NCCF) underwent a name change to become the National Disaster Response Fund (NDRF) following the enactment of the Disaster Management Act.

oIt is legally defined in section 46 of the Disaster Management Act, 2005 (DM Act), specifying its purpose and functions.

• The NDRF is kept in the Public Account as part of the "non-interest-bearing reserve funds.

Role of NDRF

• Disaster Expense Coverage: Managed by the Central Government to cover expenses related to emergency response, relief, and rehabilitation in the event of a threatening disaster or disaster.
• Supplementary Fund: Acts as a supplementary source to the State Disaster Response Fund (SDRF) in the case of severe disasters when sufficient funds are not available in the SDRF.
• SDRF Support: The primary fund available to State governments for immediate relief in response to officially notified disasters.
• Financing: Financed through the collection of a cess on specific items subject to excise and customs duties.

oThe funding is approved on an annual basis through the Finance Bill.

State Disaster Response Fund (SDRF)

• About: It is established by each state in accordance with the Disaster Management Act 2005.
• Recommendations: 13th Finance Commission.
• Government Contribution: The Government of India allocates 75% of the total yearly allocation of SDRF to general states and 90% to special category states.
• Authority The State Executive Committee, led by the Chief Secretary, holds the authority to make decisions regarding all matters related to financing relief expenditures from SDRF.