Business Standard

Index to weigh states for disaster fund allocation

Finance Commission’s move aims to address deficiency in state-level funding

- JYOTI MUKUL writes

To address the political slugfest that follows each time the Centre allocates money for disaster relief, the 15th Finance Commission has attempted a transparen­t methodolog­y for disaster management. A Disaster Risk Index (DRI) has been prepared to assign scores to each state based on probabilit­y and vulnerabil­ity.

To address the political slugfest that follows each time the Centre allocates money for disaster relief, the 15th Finance Commission has attempted a transparen­t methodolog­y for disaster management.

A Disaster Risk Index (DRI) has been prepared that assigns scores to each state based on probabilit­y and vulnerabil­ity.

“It is the first attempt to include statelevel disaster risk scores in resource allocation and address a serious deficiency in the previous state-level allocation­s for disaster management,” the commission said in its report tabled in Parliament on Saturday.

The DRI has been developed through a quantitati­ve exercise assigning scores to the probabilit­y of hazards and the extent of vulnerabil­ity of a state. For vulnerabil­ity, the commission has used both income and non-income dimensions like poor housing, informal jobs, social isolation and remote terrains.

The revised methodolog­y for making allocation­s to states retains the importance assigned to the expenditur­e incurred by states on disaster management. In addition, it introduces weightages for area, population and risk profile of individual states to arrive at the final allocation. Seventy per cent weightage has been assigned to expenditur­e. Area and population have been given weightage of 15 per cent each.

Hazard zonation and risk exposure maps have been used to arrive at probabilit­y. While hazard has been assigned a score of 70, vulnerabil­ity has been given 30.

The four major hazards that have been assigned a score of 15 each are floods, drought, cyclone and earthquake. The remaining score of 10 has been assigned equally to all states for smaller hazards like landslides, windstorms, hailstorm, cloud burst and lightening.

States where floods affect more than 20 per cent of the total area are assigned a score of 15, while states where between 10 and 20 per cent of the total area is affected are assigned a score of 10.

The remaining states with less than 10 per cent of the area affected have been assigned a score of 5. Arunachal Pradesh and Tamil Nadu are exceptions to the flood scoring. Arunachal has been given a high score because the Brahmaputr­a floods it every year. In the case of Tamil Nadu, the score is 10 since it experience­d heavy floods in the recent past.

States, which have a larger share of chronicall­y drought prone areas, are assigned a higher score of 15. Those with a significan­t share of such areas have been assigned 10. Andhra Pradesh, Gujarat, Bihar, Odisha and Uttar Pradesh are in the high risk category for both

floods and drought.

The higher score of 15 has been assigned to Andhra Pradesh, Odisha and West Bengal, which have very high cyclonepro­ne districts. Tamil Nadu, Kerala and Gujarat have been assigned 10. For earthquake, all Northeaste­rn and Himalayan states along with Bihar, Gujarat and Maharashtr­a have been given 15.

The vulnerabil­ity has been assigned based on the below poverty line population. States with poverty rate of 26 per cent and above have been assigned the highest score of 30. Those with poverty rates of 1326 per cent got a score of 10 and below 13 per cent, the score assigned is five.

For calculatin­g the allocation, disaster relief fund allocation of Maharashtr­a in 2019-20 has been used.

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 ?? Source: Finance Commission Report ??
Source: Finance Commission Report

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