Finance Commissions and Disaster Risk Funding: A Paradigm Shift in Methodology by Fifteenth Finance Commission

DOIhttp://doi.org/10.1177/00195561221109092
Published date01 March 2023
Date01 March 2023
Subject MatterArticles
Finance Commissions
and Disaster Risk
Funding: A Paradigm
Shift in Methodology
by Fifteenth Finance
Commission
Sanjay Sharma1
Abstract
Disaster risk financing has been in practice since the Second Finance Commission
in the form of a Margin Money Scheme. Later, it was replaced with a Calamity
Relief Fund and a National Calamity Contingency Fund (NCCF)/National
Disaster Relief Fund (NDRF). These funds were based on expenditure-based
funding, from which a state is provided relief funds based on its past expenditure.
There have been a lot of discrepancies as states like Uttarakhand, with high haz-
ard risk vulnerability, received `1,158 crore, and Haryana, comparatively a less
hazard risk vulnerability state, received `1,699 crore for 2015–2020 from the
State Disaster Response Fund (SDRF). States and other agencies like National
Disaster Management Authority (NDMA) have been demanding, for replacing
this expenditure-based funding with a state-specific hazard/disaster risk vulner-
ability for a long time. The Fifteenth Finance Commission addressed this long-
standing demand by incorporating an innovative methodology for disaster risk
funding. It made a slight departure from the past method and included area,
population and disaster risk index for calculating a state’s share in disaster risk
funding. This article analytically examines the past and present methodologies of
disaster risk funding by applying quantitative and qualitative research methods.
Keywords
Disaster Risk Index, nance commission, disaster risk funding, disaster manage-
ment, Fifteenth Finance Commission, India
Article
Indian Journal of Public
Administration
69(1) 47–58, 2023
© 2022 IIPA
Reprints and permissions:
in.sagepub.com/journals-permissions-india
DOI: 10.1177/00195561221109092
journals.sagepub.com/home/ipa
1 Department of Politics and International Studies, Pondicherry University, Puducherry, India.
Corresponding author:
Sanjay Sharma, Department of Politics and International Studies, Pondicherry University, Puducherry
605014, India.
E-mail: sanjaysharma@pondiuni.ac.in

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