Current Affairs

General Studies Prelims

General Studies (Mains)

Advance Disaster Fund Released for COVID-19

The State Disaster Response Fund (SDRF) is a financial reserve meant to provide immediate relief to individuals and areas affected by natural or man-made disasters. Established under the Disaster Management Act, 2005, it is a primary resource for states in India to tackle various notified calamities. The significance of the SDRF has grown over time, especially with the onset of the COVID-19 pandemic, which necessitated substantial financial resources for an effective response.

Understanding the State Disaster Response Fund

The SDRF is not a singular entity but comprises separate funds for each state. These funds are primarily used for providing immediate relief to the victims of cyclones, droughts, earthquakes, fires, floods, and other notified disasters that do not fall within the purview of the National Disaster Response Fund (NDRF). The allocation of money to the SDRF is guided by the recommendations of the Finance Commission, a constitutional body that determines the financial relations between the central government and the states.

Central Government’s Contribution and Release of Funds

The financing of the SDRF is a joint effort between the central government and the respective state governments. According to the guidelines, the central government contributes a significant percentage of the total amount, which varies based on the Finance Commission’s recommendations. This contribution is typically disbursed to the states in two equal instalments.

In a departure from the usual schedule, the central government released this year’s first instalment to all states in advance. The decision to expedite the release of funds underscores the government’s commitment to ensuring that states have adequate resources to deal with any immediate disaster-related exigencies. Normally, the first instalment is released in June, but the urgency brought about by certain situations, such as the COVID-19 pandemic, can prompt an earlier disbursement.

Utilization of SDRF for COVID-19 Response

The COVID-19 pandemic presented an unprecedented challenge for disaster management authorities. Recognizing the need for substantial financial resources to combat the pandemic, the central government allowed for a significant portion of the SDRF to be utilized specifically for COVID-19 containment and relief efforts. States were permitted to use up to half of the allocated SDRF amount to address the health crisis posed by the coronavirus outbreak.

This flexibility in fund usage empowered states to enhance their healthcare infrastructure, procure essential medical supplies, and support frontline workers. It also facilitated the provision of necessary assistance to the population directly affected by the pandemic, such as migrant laborers and those under quarantine.

Impact of Advanced Release of SDRF Funds

The advanced release of SDRF funds to states has several positive impacts. Primarily, it ensures that states have immediate access to financial resources to respond effectively to disasters. This proactive approach helps in reducing the response time during emergencies and enhances the capacity of state governments to mitigate the effects of disasters on the population and economy.

Furthermore, the availability of funds before the typical schedule allows states to plan and implement disaster management strategies more efficiently. It also provides a cushion for unexpected events or disasters that may occur before the usual release of funds in June.

Conclusion

The State Disaster Response Fund plays a crucial role in India’s disaster management framework. By allowing the use of funds for COVID-19 response and releasing instalments in advance, the central government demonstrates adaptability and support to state-level disaster management efforts. As challenges such as the COVID-19 pandemic continue to test the resilience of nations, the strategic utilization of the SDRF is vital for safeguarding communities and strengthening disaster preparedness.

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