[Answered] In light of recent proposals to amend the Disaster Management Act, discuss the challenges and benefits of involving states in the disbursal of disaster relief funds. How can a more decentralized approach improve disaster management in India?
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Introduction: Contextual Introduction

Body: Challenges in current DMA & benefits of involving states in the disbursal of disaster relief funds

Conclusion: Way forward

The ongoing controversy surrounding the disbursal of disaster relief funds from the Union government to states, particularly after the devastating effects of Cyclone Fengal in Tamil Nadu, highlights significant gaps in the existing disaster management framework.

Challenges in the Current Framework

  • Inadequate Funding: States like Tamil Nadu have expressed concerns that the funds allocated under the State Disaster Response Fund (SDRF) are insufficient to meet the immediate and long-term needs after major disasters.
  • Inequitable Fund Distribution: The current disaster relief system, based on formulas devised by the Finance Commission, often leads to dissatisfaction among states that feel they are not adequately compensated for the scale of destruction they face.
  • Centralization of Decision-making: The centralized nature of the National Disaster Management Authority (NDMA) has been criticized for its lack of flexibility in responding to regional needs.

Proposed Decentralized Approach:

  • Decentralized Decision-Making: The NDMC would allow for a more democratic and balanced approach to decision-making, with a weighted voting system based on each state’s representation in the Rajya Sabha.
  • Fairer Fund Allocation: By giving states a larger share of the decision-making power, the NDMC would prioritize the most affected regions and ensure that resources are allocated based on the severity of the disaster.
  • Timely Disbursal: The Bill also aims to expedite the release of funds, addressing a major pain point where states face considerable delays in receiving financial assistance for immediate relief efforts.

Benefits of the Decentralized Approach

  • Tailored Responses: States, having a clearer understanding of their regional vulnerabilities and needs, can deploy funds more effectively, targeting areas that require urgent attention. This approach fosters more localized and specialized disaster management.
  • Enhanced Accountability and Transparency: With states being directly involved in the decision-making process, there is an increased possibility of better monitoring and utilization of funds, reducing the chances of fund mismanagement or underutilization.
  • Strengthened Federalism: By giving states more autonomy in disaster management, the proposal aligns with the principles of cooperative federalism. It acknowledges that local governments, being closer to the ground, are better positioned to respond to specific regional crises.

Conclusion

The proposed amendments to the Disaster Management Act offer a promising shift towards a more decentralized, equitable, and transparent disaster management system. By involving states more directly in the decision-making process regarding disaster relief funds, India can ensure that financial resources are allocated more effectively and on time. However, to be fully successful, the system will require careful design to address disparities in state capacities and ensure effective coordination between the Centre and states. The proposed NDMC could be a critical step towards improving disaster preparedness and response across the country.

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