National Disaster Response Fund

Q. Why is it in News?

A. The government has come out with the modalities for contributions to the National Disaster Response Fund (NDRF). Centre has applied an unused provision in the Disaster Management Act, 2005 to allow any person or institution to contribute to the National Disaster Response Fund (NDRF) for the purpose of disaster management

Q. What is National Disaster Response Fund? 

A.  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. It has been defined in Section 46 of the Disaster Management Act, 2005 (DM Act).

Q How is NDRF different from SDRF?

A. It has been constituted to 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 provided adequate funds are not available in SDRF.

The SDRF is the primary fund available with State governments to meet the expenses of relief operations of an immediate nature, for a range of specified disasters. The Centre contributes 75% of the SDRF allocation for general category States and Union Territories, and 90% for special category States (northeast States, Sikkim, Uttarakhand, Himachal Pradesh, and Jammu & Kashmir).

Q Is it an interest bearing fund? 

A. No, its non-interest bearing fund and comes under purview of Public Accounts of Government of India under Reserve Funds category. 

Q. What is it to be used for, can it be used for mitigation purposes?

• NDRF amount can be spent only towards meeting the expenses for emergency response, relief and rehabilitation.

•It is a Response fund and  It cannot be used for  projects exclusively for the purpose of mitigation, for example measures aimed at reducing the risk, impact or effect of a disaster or threatening disaster situation a separate fund called National Disaster Mitigation Fund has been constituted.

Q. What are various sources of Financing NDRF?

• It is Financed through the levy of a cess on certain items, chargeable to excise and customs duty, and approved annually through the Finance Bill.
• The requirement for funds beyond what is available under the NDRF is met through general budgetary resources.
• Currently, a National Calamity Contingency Duty (NCCD) is levied to finance the NDRF and additional budgetary support is provided as and when necessary.
• A provision also exists in the DM Act to encourage any person or institution to make a contribution to the NDRF.

Q. Which is the agency responsible for its monitoring and auditing?

• Department of Agriculture and Cooperation under Ministry of Agriculture (MoA) monitors relief activities for calamities associated with drought, hailstorms, pest attacks and cold wave /frost while rest of the natural calamities are monitored by Ministry of Home Affairs (MHA).
• Comptroller and Auditor General of India (CAG) audits the accounts of NDRF.