The Indian Centre has recently made the first payment from the State Disaster Response Fund (SDRF) to states affected by the severe second wave of Covid-19, which began in April 2021 and has resulted in thousands of fatalities. Traditionally, the initial SDRF instalment is paid out in June, as dictated by the guidelines of the Finance Commission.
Defining the State Disaster Response Fund (SDRF)
Established under Section 48 (1) (a) of the Disaster Management Act of 2005, the SDRF is a key financial resource for state governments to handle notified disasters. Its constitution was based on the recommendations of the 13th Finance Commission. The primary function of this fund is to cover expenses related to providing immediate relief in the wake of various disasters.
Audits of the SDRF are conducted yearly by the Comptroller and Auditor General of India (CAG).
Financial Contributions Towards SDRF
The Indian government’s central body contributes significantly to the SDRF. For the general category of States and Union Territories, the Centre provides 75% of the SDRF allocation. However, it contributes 90% of the allocation for special category regions, including northeastern States, Uttarakhand, Himachal Pradesh, Sikkim, and Jammu and Kashmir.
This contribution from the Centre is given in two equal instalments yearly and is based on the recommendation of the Finance Commission.
Nature of Disasters Covered Under SDRF
The SDRF provides financial aid for a variety of disasters, both natural and man-made. Included in this list are cyclones, droughts, earthquakes, fires, floods, tsunamis, hailstorms, landslides, avalanches, cloudbursts, pest attacks, frost, and cold waves.
Provision for Local Disasters
In addition to the listed disasters, the SDRF also allows state governments the flexibility to use up to 10% of the funds available for immediate relief to victims of local disasters. These are typically events that are considered to be ‘disasters’ in the local context, but are not included in the Ministry of Home Affairs’ notified list of disasters. This provision enables more adaptive and locally-relevant responses to unique or unusual circumstances.
This ensures that all states have a certain level of financial freedom and autonomy to provide quick and effective relief to their populace when facing less traditional, yet no less dangerous, disaster situations. The SDRF’s wide-ranging coverage of disaster types and its adaptability to local contexts underscores its importance as a key tool for disaster management at the state level.