State Disaster Response and Mitigation Funds

The State Disaster Response Fund (SDRF) finances immediate response and relief when a disaster occurs, whereas the State Disaster Mitigation Fund (SDMF) finances measures that reduce disaster risk before future losses occur. They therefore support distinct stages of disaster management: coping with an event and preventing or limiting its impact.

Statutory and financial basis

State governments establish the SDRF under Section 48(1)(a) and the SDMF under Section 48(1)(c) of the Disaster Management Act, 2005. Under the Fifteenth Finance Commission framework for 2021-26, the State Disaster Risk Management Fund is divided between the SDRF and SDMF in an 80:20 ratio.

Function of the SDRF

The SDRF is the primary fund available to a state for immediate response and relief following disasters notified for assistance under prescribed norms. Its assistance provides relief rather than compensation for every loss suffered.

• It meets eligible expenditure on immediate measures such as evacuation, temporary relief, medical assistance and restoration of essential services.
• A state may use a prescribed portion for a disaster considered significant in its local context, even when that hazard is absent from the nationally notified list, subject to approved state norms and procedures.

Function of the SDMF

The SDMF supports mitigation measures intended to reduce disaster risk, impact or effects. It therefore finances durable, hazard-specific or community-based risk-reduction interventions rather than immediate post-disaster relief.

• Mitigation may address vulnerability, exposure and the resilience of settlements, infrastructure or livelihoods.
• SDMF expenditure must be distinguishable from routine departmental development spending and from response expenditure chargeable to the SDRF.

Operational distinction

The SDRF is principally event-triggered and relief-oriented, while the SDMF is risk-oriented and preventive. Maintaining separate funding windows prevents urgent relief needs from displacing long-term risk reduction, and vice versa.