NDRF – INDIA

Question:Consider the following statements regarding National Disaster Response Fund (NDRF):
1)It is defined in Section 44 of the Disaster Management Act, 2005.
2)National Calamity Contingency Fund (NCCF) was renamed as National Disaster Response Fund (NDRF) with the enactment of the Disaster Management Act in 2005.
3)National Calamity Contingency Duty (NCCD) is levied to finance the NDRF.
Which of the pairs given above is/are correct?
(a) 1 and 2
(b) 2 and 3
(c) 1 and 3
(d) 1,2 and 3
Answer : (b)
Related Fact :

Context:

The Finance Ministry has given approval to a proposal to allow individuals and institutions to contribute directly to the National Disaster Relief Fund (NDRF).

About :

  • Defined in Section 46 of the Disaster Management Act, 2005 (DM Act).
  • It is a fund managed by the Central Government for meeting the expenses for emergency response, relief and rehabilitation due to any threatening disaster situation or disaster.
  • Constitutedto supplement the funds of the State Disaster Response Funds (SDRF)of the states to facilitate immediate relief in case of calamities of a severe nature.
  • National Calamity Contingency Fund (NCCF) was renamed as National Disaster Response Fund (NDRF) with the enactment of the Disaster Management Act in 2005.

Sources of Financing NDRF:

  • Financed through the levy of a cess on certain items, chargeable to excise and customs duty, and approved annually through the Finance Bill.
  • The requirement for funds beyond what is available under the NDRF is met through general budgetary resources.
  • Currently, a National Calamity Contingency Duty (NCCD) is levied to finance the NDRF and additional budgetary support is provided as and when necessary.
  • Although Section 46 includes a clause for grants made by any person or institution, provisions for such donations had not been made.

Features :

  • Located in the “Public Accounts” of Government of India under “Reserve Funds not bearing interest“.
  • Comptroller and Auditor General of India (CAG) audits the accounts of NDRF.

By – Arpit Mishra

Link :
http://www.ndrf.gov.in/
https://www.thehindu.com/news/national/finance-ministry-clears-way-for-individual-institutional-contributions-to-ndrf/article31890128.ece