The Home ministry recently issued fresh norms for constitution and administration of “recovery and reconstruction” funds following the 15th Finance Commission‘s suggestions.
New guidelines for recovery and reconstruction funds:
- The Fifteenth Finance Commission (XV-FC) made provision of funds under Recovery and Reconstruction (R&R) funding window both within the SDRF and NDRF.
- Its main aim is to help people affected by disasters on a long-term basis.
- The State Disaster Management Authority (SDMA) is the nodal agency responsible for implementing the R&R Funding Window.
Fund Distribution:
- The National Disaster Risk Management Fund (NDRMF) allocates 80% to the National Disaster Response Fund (NDRF) and 20% to the National Disaster Mitigation Fund (NDMF).
- Similarly, the State Disaster Risk Management Fund (SDRMF) allocates 80% to the State Disaster Response Fund (SDRF) and 20% to the State Disaster Mitigation Fund (SDMF).
- Within the NDRF, 40% is allocated to Response and Relief, 30% to Recovery and Reconstruction, and 10% to Preparedness and Capacity Building.
- The SDRF follows the same sub-allocation structure: 40% for Response and Relief, 30% for Recovery and Reconstruction, and 10% for Preparedness and Capacity Building.
- There is flexibility to reallocate up to 10% of the earmarked amount within the sub-windows of the NDRF and SDRF within the same financial year.
- However, the funding windows between NDRF and NDMF, as well as SDRF and SDMF, are not interchangeable.
Calamities Covered:
- SDRF can be used for cyclones, droughts, earthquakes, fires, floods, tsunamis, hailstorms, landslides, avalanches, cloudbursts, pest attacks, and frost and cold waves.
- The NDRF provides additional funds for severe disasters when the state’s expenditure exceeds its financial capacity.
- States can allocate up to 10% of their annual SDRF allocation to recovery and reconstruction for state-specific natural disasters not listed among the 12 recognized disasters.
- Such need to be notified these disasters and established transparent guidelines with the approval of the State Executive Committee (SEC).
- Expenses beyond this limit must be covered by state resources and must comply with established accounting norms.
Ref: Source
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Frequently Asked Question:
Who is responsible for implementing the Recovery and Reconstruction (R&R) Funding Window?
The State Disaster Management Authority (SDMA) is the nodal agency responsible for implementing the R&R Funding Window at the state level.
How is the National Disaster Risk Management Fund (NDRMF) allocated?
The NDRMF allocates 80% of its funds to the National Disaster Response Fund (NDRF) and 20% to the National Disaster Mitigation Fund (NDMF).
Which calamities are covered under the SDRF for recovery and reconstruction?
The SDRF can be used for recovery and reconstruction related to: Cyclones, Droughts, Earthquakes, Fires, Floods, Tsunamis, Hailstorms, Landslides, Avalanches, Cloudbursts, Pest attacks, Frost and cold waves.