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Disaster Relief Fund - Shanmugam IAS academy in coimbatore
Disaster Relief Fund


What’s in news?

Government of India approved disaster relief fund to seven states.

Key data’s:

  • Decided by: The release of additional assistance from the National Disaster Relief Fund was made by the high-level committee meeting.
  • Chairman: The meeting was chaired by Union Home Minister Amit Shah.
  • Seven states: The fund will be released to seven states. The states are Uttar Pradesh, Karnataka, Tripura, Assam, Maharashtra, Madhya Pradesh and Himachal Pradesh.
  • The states Uttar Pradesh, Karnataka, Tripura, Assam were BJP ruling states.
  • New allocated fund: Rs 5,908 crores for the seven states.
  • Interim fund: Earlier, the central government has released a total of Rs 3200 crore to four states – Karnataka, Madhya Pradesh, Maharashtra and Bihar.
  • Missed state: The Kerala state was one State that was battered by heavy flood in two successive years, 2018 and 2019, and is still struggling to source funds for rehabilitation of the victims.
  • Finance Minister’s statement: Thomas Isaac, the Finance Minister of Kerala government accused the BJP is working adamantly that, Kerala shouldn’t receive even a single rupee more to tide over the flood distress.
  • The decision of omitting the Kerala for the relief fund, comes after the Centre rejected the design for a carnival float the State had presented for the Republic Day parade in Delhi.
  • Kerala Assembly had passed a resolution named as ‘anti-Citizenship (Amendment) Act, 2019’ least had been in the forefront of the agitations against the Citizenship (Amendment) Act, 2019.

National Disaster Response Fund:

  • The response fund was established through the Disaster Management Act, 2005.
  • Definition: The response fund was defined in the Section 46 of the Disaster Management Act, 2005.
  • Purpose: 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.
  • NDRF will 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.
  • In 2010, National Calamity Contingency Fund was renamed as NDRF.
  • NDRF is located in the “Public Accounts” of Government of India under “Reserve Funds not bearing interest”.
  • Sources: The fund is generated through the collection of taxes like cess on certain items, excise duties, customs duties and the fund also generated from allocation by the GoI in the Budget.

Calamity fund:

  • The 9th Finance Commission in 1990 recommended and established a calamity fund for the first time.

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