EconomyGS3+ GS2

Heatwaves Formally Notified as Natural Calamity, Unlocking Full Disaster Funds

The Hindu·2026-08-27· Read original

"Heatwaves Formally Notified as Natural Calamity, Unlocking Full Disaster Funds"

Prelims Facts

  • •Heatwaves and lightning are now among India's 14 notified natural calamities, as announced by the Ministry of Home Affairs following an FC-XVI recommendation.
  • •FC-XVI recommended Rs 2.04 lakh crore for State disaster funds over 2026-27 to 2030-31, approximately 28% more than the previous Finance Commission's allocation.
+4 more facts — sign up free to unlock

Key Terms

State Disaster Response Fund (SDRF)

Fund for immediate relief, response, and reconstruction after a notified disaster.

State Disaster Mitigation Fund (SDMF)

Fund for long-term interventions to reduce the risk of a climate event becoming a disaster.

+4 more terms — sign up free to unlock

Study Note

BackgroundCore Concept

Background

India's disaster finance architecture rests on a constitutional foundation. Article 280 of the Constitution mandates the Finance Commission to recommend arrangements for disaster management funds. Over successive Finance Commissions, this has evolved into a two-tier structure: a State-level fund for routine disaster response and a national fund for large-scale calamities that exceed State capacity.

The Disaster Management Act, 2005 created the statutory framework for disaster governance. It established the National Disaster Management Authority (NDMA) and State Disaster Management Authorities (SDMAs) as the apex planning and coordination bodies. The Act also provided for the National Disaster Response Fund (NDRF) and State Disaster Response Funds (SDRFs) as the primary financial instruments. A later addition, the State Disaster Mitigation Fund (SDMF), shifted emphasis from reactive relief to proactive risk reduction. This reflects a broader recognition that prevention spending is more cost-effective than post-disaster reconstruction.

The list of notified natural calamities determines which events qualify for SDRF and NDRF financing. Historically, this list included floods, cyclones, droughts, earthquakes, and landslides. Heatwaves, despite their growing mortality burden, occupied an anomalous position. States could treat them as 'local disasters' and draw on SDRF, but only up to 10% of their annual allocation and only after setting separate compensation norms. This ceiling did not apply to other notified disasters. The new notification removes this structural asymmetry.

The Topic Explained

The Sixteenth Finance Commission (FC-XVI) recommended a total of Rs 2.04 lakh crore for State disaster funds over the five-year period from 2026-27 to 2030-31. This is approximately 28% more than the allocation recommended by the previous Finance Commission. Of this total, Rs 1.6 lakh crore is allocated to the SDRF for immediate response, relief, and reconstruction. The remaining amount goes to the SDMF for longer-term risk reduction interventions.

The inter-State distribution of these funds uses a disaster risk index. This index accounts for the frequency and intensity of different hazards, exposure and vulnerability of the population, and actual expenditure incurred by States during the previous Commission's tenure. …

Sign up free to read the full noteIncludes the rest of The Topic Explained and Current Context

Related PYQs

2025GS2 Mains

Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?

Sign up free to see the model answer
2020GS3 Mains

Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions?

Sign up free to see the model answer

Practice MCQs

Economymedium

Consider the following statements regarding India's disaster finance architecture:

1.The State Disaster Response Fund (SDRF) is meant for immediate relief and reconstruction after a disaster.

2.The State Disaster Mitigation Fund (SDMF) is meant for long-term risk reduction interventions.

3.The inter-State distribution of disaster funds by the Sixteenth Finance Commission uses a disaster risk index.

4.States can seek support from national disaster funds only if a disaster is declared a national calamity by Parliament.

How many of the above statements are correct?

AOnly one
BOnly two
COnly three
DAll four
Sign up to check your answer & see the explanation
Economyhard

With reference to the Sixteenth Finance Commission's (FC-XVI) recommendations on disaster funds, consider the following:

1.FC-XVI recommended approximately Rs 2.04 lakh crore for State disaster funds over 2026-27 to 2030-31.

2.This allocation is about 28% more than the previous Finance Commission's recommendation.

3.Of the total, Rs 1.6 lakh crore is allocated to the State Disaster Mitigation Fund (SDMF).

4.FC-XVI recommended Rs 79,406 crore for national disaster funds over the same period.

Which of the statements given above are correct?

A1, 2 and 4 only
B1, 3 and 4 only
C2, 3 and 4 only
D1, 2, 3 and 4
Sign up to check your answer & see the explanation
Economymedium

Match the following disaster finance instruments with their primary purpose:

List I (Instrument) — List II (Primary Purpose)

A.State Disaster Response Fund (SDRF) — 1. Long-term risk reduction such as cooling shelters and early-warning systems

B.State Disaster Mitigation Fund (SDMF) — 2. Immediate relief, response, and reconstruction after a notified disaster

C.National Disaster Response Fund (NDRF) — 3. Support to States when a disaster exceeds their own resources

D.Disaster Risk Index — 4. Formula for inter-State distribution of disaster funds

AA-2, B-1, C-3, D-4
BA-1, B-2, C-4, D-3
CA-2, B-3, C-1, D-4
DA-3, B-1, C-2, D-4
Sign up to check your answer & see the explanation
Economymedium

Consider the following statements regarding heatwaves in India's disaster finance system:

1.Before the recent notification, States could use up to 10% of their annual SDRF allocation for heatwaves declared as local disasters.

2.The recent notification brings the total number of notified natural calamities in India to 14.

3.Heat Action Plans (HAPs) are mandatory for all urban local bodies under the Disaster Management Act, 2005.

4.The SDMF can be used to finance cooling shelters and blue-green infrastructure as heat mitigation measures.

Which of the statements given above are correct?

A1 and 2 only
B1, 2 and 4 only
C2, 3 and 4 only
D1, 2, 3 and 4
Sign up to check your answer & see the explanation
Economyeasy

Which of the following best describes the constitutional basis for the Finance Commission's role in recommending disaster management fund arrangements in India?

AArticle 275 of the Constitution, which provides for grants-in-aid to States
BArticle 280 of the Constitution, which mandates the Finance Commission to recommend such arrangements
CArticle 282 of the Constitution, which allows the Union to make grants for public purposes
DThe Disaster Management Act, 2005, which empowers the Finance Commission to allocate disaster funds
Sign up to check your answer & see the explanation

Want the full note, Prelims Facts & MCQ answers?

Create a free account — takes less than a minute.

Create free account