The Scheme and arrangements for
financing the relief expenditure in the wake of natural calamities are governed
by the recommendations of Finance Commissions appointed by Government of India
after every five years.
The present scheme, in operation
for the period 2000-2005, is based on the recommendations of Eleventh Finance
Commission. As per the Scheme, each State has been allocated a certain annual
corpus called Calamity Relief Fund (CRF), administered by a State Level
Committee, headed by the Chief Secretary of the State Government.
The corpus is built by annual
contributions of the Union Government and the State Governments concerned in the
ratio of 3:1. The share of the Union Government is released in two equal
installments irrespective of the fact that there is any calamity or not.
At present, the aggregate accretion in the States' CRF for a period of
five years from 2000-2005 amounts to Rs 110,075.90 million against an amount of
Rs 63042.0 million for the period
The Scheme also provides for
extending additional assistance to the States, over and above the provisions of
CRF, in the event of a natural calamity of severe nature, after following the
established procedure. This
provision exists in the form of National Calamity Contingency Fund (NCCF) with
an initial corpus of Rs. 5000.00 million (for
2000-2005) with the Union
Government to supplement the financial resources needed for relief operations.
This fund is required to be recouped by levy of a special surcharge on the
Central taxes for a limited period.