The 16" Finance Commission has recommended total allocation of Rs. 2,04,401 crores for State Disaster Response Fund and State Disaster Mitigation Fund in the State Disaster Fund together for the award period 2026-27 to 2023-31. Out of which Rs. 1,63,521 crore (80%) is for State %) is for State Disaster Response Fund and Rs. 40,880 crore (20%) is for State Disaster Mitigation Fund..

The 16" Finance Commission has allocated total amount of Rs. 1,63,521 crore under SDRF to the States for the duration of the Award period 2026-31. Out of this Union share is Rs. 1,24.732.65 crore and State share is Rs. 38,788.35 crore. Within the SDRF allocation, there is, no sub-allocations of fund.

Similarly, recommended a total corpus of Rs. 79,406 crore for National Fund for the period of 2026-27 to 2030-31. However, based on the analogy adopted by the 16t FC in the case of SDRF and SDMF, and for provisioning for P&CB activities, 75% of the National Fund has been earmarked for NDRF and a maximum 25% for National Disaster Mitigation Fund.

State Disaster Response Fund

The State Disaster Response Fund (SDRF), constituted under Section 48(1) (a) of the Disaster Management Act, 2005, is the primary fund available with State Governments for responses to notified disasters. The Central Government contributes 75% of SDRF allocation for general category States/UTs and 90% for special category States/UTs (NE States, Sikkim, Uttarakhand, Himachal Pradesh). The annual Central contribution is released in two equal installments as per the recommendation of the Finance Commission. SDRF shall be used only for meeting the expenditure for providing immediate relief to the victims.

Disaster (s) covered under SDRF:  : avalanche, cloudburst, cyclone, drought, earthquake, fire, flood, frost & cold waves, hailstorm, heatwave, landslide, lightning, pest attack and tsunami.

Local Disaster: A State Government may use up to 10 percent of the funds available under the SDRF for providing immediate relief to the victims of natural disasters that they consider to be ‘disasters’ within the local context in the State and which are not included in the notified list of disasters of the Ministry of Home Affairs subject to the condition that the State Government has listed the State specific natural disasters and notified clear and transparent norms and guidelines for such disasters with the approval of the State Authority, i.e., the State Executive Authority (SEC).

National Disaster Response Fund

The National Disaster Response Fund (NDRF), constituted under Section 46 of the Disaster Management Act, 2005, supplements SDRF of a State, in case of a disaster of severe nature, provided adequate funds are not available in SDRF.

Funding of National Disaster Response Fund (NDRF) and State Disaster Response Fund (SDRF)

The Government of India supplements the effort of the State Government by providing assistance for relief of immediate nature through two ways (i) State Disaster Response Fund (SDRF) and (ii) National Disaster Response Fund (NDRF) as per established procedure.

The allocation of funds under SDRF and NDRF is based on the recommendations of the successive Financial Commissions. For SDRF, the contribution is made by the Central Government and State Governments in the ratio of 75:25 to all states, except for the North-Eastern and Himalayan States, for which it is 90:10 ratio, while in NDRF, the entire contribution in the fund comes from the Central Government.

In order to ensure additional source of funding to National Disaster Response Fund (NDRF), the Central Government has laid out the modalities for receipt of contributions/ grants from any person or institution for the purpose of disaster management in the National Disaster Response Fund (NDRF), as per Section 46 (1) (b) of the Disaster Management Act, 2005, as an additional source of funding to NDRF. Accordingly, contributions/ grants are accepted from any person or institution in NDRF through any of the following mode:

• Through physical instruments: to be drawn favoring "PAO (Secretariat), MHA" at New Delhi. On the back of the instrument, the individual may mention the remarks for "Contributions/ Grants to NDRF".
• Through RTGS/ NEFT/ UPI: Contributions may also be made through RTGS/ NEFT indicating the purpose as "Contributions/ Grants to NDRF" and deposited in the Receipt Account No. 10314382194, IFSC Code- SBIN0000625, State Bank of India, Central Sectt Branch, New Delhi.
• Through Bharatkosh portal https://bharatkosh.gov.in using Net banking, Debit Cards, Credit Cards & UPI as per following steps:
  • Click on "Quick Payment" option on the home page https://bharatkosh.gov.in.
  • On the next page, select the Ministry as "Home Affairs" and the purpose as "Contributions/ Grants to NDRF" and the website would further guide for payment.

State Disaster Mitigation Fund (SDMF) and National Disaster Mitigation Fund (NDMF) & National Disaster Mitigation Fund (NDMF)

16th Finance Commission has allocated Rs. 40,880 crore for State Disaster Mitigation Fund SDMF) and 25% of the National Fund (i.e. Rs. 79,406 crore) has been earmarked for National Disaster Mitigation Fund for the award period from 2026-27 to 2030-31.

The allocation of funds, exclusively for the mitigation of disaster risks, has been made by the Government, both at national and state level. It will help the States in carrying out mitigation activities for reducing the impact of disasters.

Central Government contributes 75% for all States (90% for North-Eastern and Himalayan States) as Centre share in SDMF.