Funding Disaster Relief

Despite all the brouhaha around PM CARES Fund, it is states that are at the forefront of funding disaster relief and rehabilitation

- DIPAK MONDAL

With over 4,200 positive cases and 220 deaths – numbers that are only increasing day by day – and revenue expected to take a massive hit due to the 40day lockdown, Maharashtra, the worst-affected state in the Covid-19 pandemic, is in desperate need of funds for testing, lab equipment, quarantining and other relief work.

It is not alone. States across the country will need to be handheld in terms of funds, with resources pooled in from across Central and state ministries to help tackle a pandemic of this proportion. The question then is, are there dedicated funds to address the situation?

The Options Available

The focus currently is on the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund), a new trust constituted by Prime Minister Narendra Modi to mobilise resources through donations to fight the coronavirus outbreak. However, the Centre and states already have a separate fund – not dependent on donations but budgetary allocations – for relief and rehabilitation work in case of a disaster. The fund has two parts – the State Disaster Response Fund (SDRF) and the National Disaster Response Fund (NDRF). Together, they have a size of ₹32,000 crore, of which close to ₹29,000 crore is with states under SDRF.

While SDRFs comprise the bulk of the fund allotted by the Centre for disaster management, donation-based funds such as the Prime Minister’s National Relief Fund and the Chief Minister’s Relief Fund are other sources.