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15th Finance Commission Rejected Heat Waves as Natural Disaster

  • 25 Jul 2024

On July 24th, 2024, the Centre said that heat waves are not considered a natural calamity under the notified list of disasters eligible for financial assistance as the 15th Finance Commission did not find merit to expand the scope of the current list.

Key Points

  • India recorded 40,000 suspected cases of heatstroke and over 100 heat-related deaths during one of its hottest and longest heatwaves in 2024.
  • According to Finance Commission 12 disasters, cyclones, droughts, earthquakes, fires, floods, tsunamis, hailstorms, landslides, avalanches, cloud bursts, pest attacks, and frost and cold wave are eligible for National Disaster Response Fund and State Disaster Response Fund assistance.

National Disaster Response Fund and State Disaster Response Fund

  • The National Disaster Response Fund (NDRF), constituted under Section 46 of the Disaster Management Act, 2005
  • The allocation of funds under SDRF and NDRF is based on the recommendations of the successive Financial Commissions.
  • For SDRF, the contribution is made by the Central Government and State Governments in the ratio of 75:25 to all states, except for the North-Eastern and Himalayan States, for which it is 90:10 ratio, while in NDRF, the entire contribution in the fund comes from the Central Government.

National Disaster Mitigation Fund (NDMF) & State Disaster Mitigation Fund (SDMF)

  • 15th Finance Commission, in its report had made recommendations for setting up Mitigation Funds and suggested allocations at National and State level.
  • Accepting the recommendations of the Finance Commission, Central Government has allocated Rs. 13,693 crore for the National Disaster Mitigation Fund (NDMF) and Rs. 32,030.60 crore for State Disaster Mitigation Fund (SDMF) for the period 2021-22 to 2025-26
  • Central Government had constituted the National Disaster Mitigation Fund (NDMF) on 5th February 2021 and also advised all the State Governments to set up State Disaster Mitigation Fund (SDMF) in the State. So far, all the States, except Telangana, have intimated setting up of SDMF.
  • Central Government contributes 75% for all States (90% for North-Eastern and Himalayan States) as Centre share in SDMF.