Finance Commissions and Disaster Risk Funding: A Paradigm Shift in Methodology by Fifteenth Finance Commission
| Author | Sanjay Sharma |
| DOI | http://doi.org/10.1177/00195561221109092 |
| Published date | 01 March 2023 |
| Date | 01 March 2023 |
| Subject Matter | Articles |
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:
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DOI: 10.1177/00195561221109092
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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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