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Union Budget falls short in addressing gaps to build disaster resilience

Published: 15th Feb, 2022


One of the major expectations from the recent Union Budget 2022-23 was that the compensation given under the National Disaster Relief Fund (NDRF) and State Disaster Relief Fund (SDRF) would be enhanced and the allocations to the states would be increased.

  • The budgetary allocations under relief on account of natural calamities and MGNREGA have been decreased; this will affect the country in building disaster resilience.
  • The allocation for relief operations on account of natural calamities has been decreased to Rs 1,511.93 crore in 2022-23 from Rs 1,538.03 crores in 2021-22.


  • India lost Rs 65 lakh crore in 2020 alone because of tropical cyclones, floods and droughts, according to the World Meteorological Organization’s ‘State of the Climate in Asia’.
  • A billion people have been impacted and nearly 83,000 lives lost due to natural disasters in India since 2001, according to a report released by the State Bank of India (SBI) in 2021.
  • If the losses are adjusted with current prices, the amount comes to a staggering Rs 13 lakh crore or six per cent of India’s gross domestic product, according to the SBI.


Sendai Framework for Disaster Risk Reduction

The Sendai Framework for Disaster Risk Reduction (SFDRR) highlights the role of improved disaster resilience of infrastructure as a cornerstone for sustainable development.

The SFDRR includes four specific targets related to loss reduction:

  • Reduce global disaster mortality
  • Reduce the number of affected people
  • Reduce direct disaster economic loss
  • Reduce disaster damage to critical infrastructure


What is disaster resilient?

 Building disaster resilience is the term we use to describe the process of helping communities and countries to be better prepared to withstand and rapidly recover from a shock such as an earthquake, drought, flood or cyclone.

Issues with the Budget Allocation on Disaster resilience:

  • People affected by natural calamities and disasters have said the compensations in the budget are minimalistic and need to be reviewed.
  • The state allocation needs to be increased for SDRFs.
  • There should also be uniformity of compensation needs across the country.
  • The list of items and norms of assistance from SDRF and NDRF for 2010-15 and 2015-20 is outdated and needs to be revised.
  • Some of the compensation listed in the norms is highly inadequate.
  • For example, compensation for houses lost during natural disasters was Rs 17,600 in the 2010-15 guidelines.
  • Under the 2015-20 guidelines, Rs 3,200 is given as compensation for partially damaged kuchcha (mud or wood) houses and Rs 95,100 for fully damaged kuchcha houses.
  • However, no one gets Rs 95,100 as compensation and Rs 3,200 is highly inadequate for restoring even a kutcha house.
  • A disaster-risk reduction (DRR) component needs to be present in departments like rural housing that can be prioritized first for people living in coastal regions, within 5 km of the sea.
  • PM Awas Yojana has got an allocation of Rs. 48,000 crore but this needs to be prioritized for ecologically sensitive zones by building disaster-resilient houses.
  • Besides housing, there are several departments like rural development and fisheries, which are key to disaster resilience.

Issue with the Budget Allocation for MGNREGA:

  • It is also unfortunate that the allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has been reduced by 25 per cent to Rs 73,000 crore, from Rs 93,000 crore in the previous budget.
  • This is despite the fact that there has been significant demand for work under MGNREGA after the loss of livelihoods post COVID-19 and post-natural disasters.
  • Also, the urban employment programme which started briefly in states like Odisha, should have been encouraged in those states where there is an outflow of internal migrants.
  • More than 90 per cent of survey respondents wanted to work for more than 100 days under MGNREGA.
  • The wage rate had to be increased at least up to the local average agriculture labour wage.

What needs to be done?

  • In states like Odisha, which have already formulated community-level disaster management plans, it is important to provide them with financial resources so that they act quickly in the event of disaster.
  • There is an urgent need to map the blocks and Gram Panchayats which are susceptible to disaster and fund them to operationalize their DRR plan.
  • It is important to provide DRR and climate change adaptation resources to the Panchayats, blocks and districts to plan and implement programmes in a localized manner.
  • Vulnerable population groups such as women, children, elderly people, those with disabilities and others should be the focus.
  • The National Coastal Mission, which has a budget outlay of Rs 195 crore, needs to ensure livelihood security of coastal communities including fisherfolk.
  • The MoEFCC has been allocated more funds as compared to previous budget. This amount should be designed to build disaster resilience in India by not only protecting livelihoods of fisherfolk but also protecting the mangroves in the Sundarbans, Odisha and other states which offer protection against cyclones.
  • But these efforts need to be encouraged and the budget should have given clear directions on that.

Way Forward:

Achieving SDG goal 13(to combat climate change and its impact), cannot be done if India does not set aside funds and continues to promote grand infrastructural projects in ecologically fragile areas. The focus should shift to the villages, towns and other locations in the states which are affected by disasters every year. Not only should we speed up relief distribution and rehabilitation but should also enhance amounts of compensation with greater allocation to the states.

In addition to this, a resident of a highly vulnerable village or city not only needs relief but also a disaster-resilient house and safety net of social security schemes, including creative use of MGNREGA.

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