A sustainable option to fund disaster management in India
By V Bhaskar and Vijay Kelkar
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There are three stages in disaster management. The first is disaster mitigation—taking long-term steps such as putting in place early warning systems and rainwater harvesting structures to reduce the impact of disasters . The second is disaster relief—where affected persons are provided assistance and essential services are restored. The third is disaster reconstruction—where damaged infrastructure is rebuilt. The Disaster Management Act, 2005, requires that a disaster management plan and a mitigation plan be formulated at the district, state and national levels. Each is to be supported at every level by disaster relief and mitigation funds that must be set up. Thus, six plans and six funds are required to be created to manage disasters in India.
Disaster management plans have been formulated. The National Disaster Relief Fund (NDRF) and State Disaster Relief Funds (SDRF) have been set up. However, mitigation plans have not been prepared at any level. Also, the corresponding funds have not been set up.
When disasters do occur, states are driven to unorthodox sources of funding for three reasons. First, the NDRF through which the centre assists states when they face severe calamities is available only for disaster relief and not for mitigation or restoration. A similar provision applies to the SDRF. States must meet outlays for disaster mitigation and restoration, which are as important as relief, on their own. Second, state governments underestimate the probability of adverse events occurring. They do not make adequate provision in their budgets for mitigation and reconstruction. Third, the borrowing capacity of states is constrained under the Fiscal Responsibility and Budget Management Act.
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