By TIOL News Service

NEW DELHI, NOV 14, 2018: The 15th Finance Commission concluded the International Workshop in India on Financing of Disaster Risk Management yesterday in New Delhi. Its Chairman, Mr N.K. Singh, in his closing remarks said that there has to be clear understanding of what exactly 'Mitigation' means in an environment of multilayered risks (High Frequency, Low Impact and various other combinations). He also said that there is a need to rework the ways in which funds can be collected for disaster risk management, both on tax and non-tax front. Impact on revenues of state govts due to GST is important as states are the first responders in case of any disasters. How should the National Disaster Response Fund (NDRF) be funded in GST era, Issue of cess on GST for the purpose of funding disaster response are some policy level issues on which GST Council may have to take a view.

This is not only the issue of earmarking of funds for DRM but also to ensure that funds earmarked are used for DRM like in case of funds devolved to states on account of Forest cover. Deciding on conditionality for use of such funds is a tricky thing. Mr Subhash Chandra Garg, Secretary DEA in his closing remarks urged the Commission to come up with a structure to make Disaster Mitigation an integral part of development expenditure. He said that there is a need to rethink about ways to finance flexible safety net for the people during stress, he said. Dr. P. K. Mishra said that issue in funding arises due to the different nature of mitigation activities (non-contingent) and relief activities (contingent needs-depends on scale of disaster).

Conference also discussed various sources of funding Disaster Risk Management viz.  Finance Commission devolution, NDRF, SDRF, crowd sourcing, CSS, CSR and funds from multilateral institutions and enhancing their utility. Role of insurance companies and the issues associated were also discussed in terms of risk transfer. It was also suggested in the conference that FC should look at institutions that enable federalism to strengthen Horizontal Exchange of resources and expertise between the states during the times of disasters.