PremiumNew Delhi: With the second wave raging across the country and impacting states' finances, the union government has released ₹8,873.6 crore in advance as the first instalment of its share of State Disaster Response Fund (SDRF) for the current financial year.
“As a special dispensation, the Department of Expenditure, Ministry of Finance at the recommendation of Ministry of Home Affairs has released in advance of the normal schedule the 1st instalment of the Central Share of the State Disaster Response Fund (SDRF) for the year 2021-22 to all the States," finance ministry said in a statement on Saturday.
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Premium Also, up to 50% of the SDRF amount can be used by the states for covid-19 containment measures.
Many states have been demanding that the Centre release more funds as it is the states that are fighting the escalating covid-19 outbreak on the ground. The union government has been facing increasing criticism over its mishandling of the second wave, as super spreader events, such as political rallies and Kumbh Mela, threaten to spread covid infections to India’s villages.
The Ministry of Home Affairs (MHA) on Thursday issued an order asking states to implement stringent containment measures under the relevant provisions of the Disaster Management (DM) Act, 2005 to limit the spread of the pandemic.
The union health ministry had earlier this week asked the States and UTs to identify districts where either the tests positivity had been more than 10% or more in the last one week; or, where bed occupancy was more than 60%; districts fulfilling any of the above two criteria should be considered for taking intensive and local containment measures.
“Normally, the first instalment of SDRF is released in the month of June as per the recommendations of the Finance Commission. However, in relaxation of normal procedure, not only has the release of SDRF been advanced, the amount has also been released without waiting for the utilization certificate of the amount provided to the States in the last financial year," the statement said.
The 15th Finance Commission (FFC) has focussed on grant in aids to states and local bodies to ensure predictability in revenue flows at a time the coronavirus pandemic has severely affected tax revenues of state governments. The FFC has recommended post-devolution revenue deficit grants amounting to about ₹3 trillion over the five-year period ending FY26.
Premium Premium “The funds from SDRF may be used by the States for various measures related to containment of COVID-19 including meeting the cost of oxygen generation and storage plants in hospitals, ventilators, air purifiers, strengthening ambulance services, COVID-19 hospitals, Covid Care Centres, consumables, thermal scanners, personal protective equipment, testing laboratories, testing kits, containment zone, etc," the statement said.
This comes at a time when the country is facing a massive surge in covid cases in the second wave, with India recording 401,993 new cases over the last 24 hours. Also, oxygen supply is running low at many hospitals amid the severe second wave, exposing India’s creaking health care system, with acute shortages of oxygen, vaccines, testing kits, hospital beds, and intensive care units (ICUs).
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