The Ministry of Home Affairs decided to treat COVID-19 as a notified disaster for the purpose of providing assistance under the State Disaster Response Fund (SDRF).
Constituted under the Disaster Management Act, 2005 by respective states, it is the primary fund available with state governments for responses to notified disasters.
The fund was constituted based on the recommendation of 13th Finance Commission.
Under the Disaster Management Act, the States/UTs can draw funds from the State Disaster Response Fund, in addition to the funds from the state government.
By law, the State Disaster Response Funds can be used only for notified Disasters under Disaster Management Act, 2005.
The Central government contributes 75 per cent towards the SDRF allocation for general category states and UTs, and over 90 per cent for special category states/UTs, which includes northeastern states, Sikkim, Himachal Pradesh and Uttarakhand).
SDRF is located in the ‘Public Account’ under ‘Reserve Fund’.
But direct expenditures are not made from Public Account.
The share of Government of India to the SDRF is treated as a ‘grant in aid’.
Ministry of Home Affairs is the nodal ministry for overseeing the operation of the SDRF and monitors compliance with prescribed processes.
Comptroller and Auditor General of India (CAG) audit the SDRF every year.
The disasters covered under the SDRF include cyclones, droughts, tsunamis, hailstorms, landslides, avalanches and pest attacks among others.
31 disaster categories are organised into five major sub-groups, which are: water and climate related disasters, geological related disasters, chemical, industrial and nuclear related disasters and biological related disasters, which includes biological disasters and epidemics.
Current scenario
Odisha became the first state in the country to allocated funds to fight against Corona Virus.
The Odisha State government has allocated Rs 200 crores to fight against the deadly disease.