Centre approves disaster relief fund to seven states

The Government of India approved Rs 5,908 crores of disaster relief fund to seven states. It includes Karnataka, UP, Assam, MP, Tripura Maharashtra and Himachal Pradesh. The states were badly affected due to floods and landslides caused by South West Monsoon rains.

Highlights

A high-level committee operating under Home Ministry on January 6, 2020 approved disaster relief fund from National Disaster Respond Fund (NDRF). In 2019-20, the GoI released Rs 8.068.33 crores from its share from the State Disaster Respond Fund (SDRF). Under the fund, 75% of the fund is contributed by the centre and 25% by the state.

National Disaster Respond Fund

The National Disaster Respond Fund was established under the disaster Management Act, 2005. It is defined under Section 46 of the act. The NDRF was established to supplement SDRF. The aim of the fund is to provide immediate relief from natural disasters and not as compensation for crop loss or damage to properties.

In 2010, the National Calamity Contingency Fund was renamed NDRF. A dedicated calamity fund for the first time was recommended by the 9th Finance Commission in 1990.

National Executive Committee

The National Executive Committee operating under National Disaster Management Authority decides on the expenses of the NDRF based on the guidelines released by GoI in 2015.

Sources of NDRF

The NDRF is collected through cess levied on certain items, excise duties, customs duties. The budgetary allocations also contribute to the fund.

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