National Calamity Relief Fund (NCRF)

Calamity Relief Fund or National Calamity Relief Fund (NCRF) was formed in the 2000-2001 financial year and was supposed to be active until the 2004-05 financial year. It was formed for the main reason to provide funds to the state governments in order to render immediate relief in the calamity-hit area. The NCRF was merged with the State Disaster Response Fund(SDRF) in 2010 for better implementation of its purpose.  The calamities to be covered using this fund were:

  • Cyclone
  • Drought
  • Earthquake
  • Fire
  • Flood
  • Hailstorm
  • Cloud Burst
  • Avalanche
  • Tsunami

All the above disasters which were severe in nature and required more funds to tackle were covered under National Calamity Relief Fund. The aim of creating this fund was to provide immediate assistance and not post-calamity reconstruction and help. The initial funds of Rs 500 crore were raised by the central government.

National Centre for Calamity Management

A National Centre for Calamity Management was formed under the Ministry of Home Affairs with the task to monitor the occurrence of the above-mentioned calamities in the country and also gauge the impact on the population and landscape.

This body was also responsible for assessing that if the state government required additional assistance or it could manage with its own resources. On the basis of this assessment, it advised the central government on the course of action to be undertaken.

Characteristics of NCRF
  • This fund was maintained in the public account of each state
  • The source of the funds was:
  1. Central Government- 75%
  2. State Government-25%
  • The fund was supposed to be administered by a State Level Committee which would be headed by the Chief Secretary of the respective states.
  • This fund was a relief fund and not for prevention or post-calamity assistance measures
  • All the unused funds were to be invested and the interest earned be accrued to the funds.

The Chief Controller of Accounts was responsible for maintaining the accounts of National Fund and the Controller General of Accounts (CGA) was given the authority to prescribe the accounting process for whatever purpose which may arise in the mandate of use of these funds.

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