16th Finance Commission Recommends Inclusion of Heatwaves and Lightning as Notified Disasters
In a significant move addressing climate-related challenges, the 16th Finance Commission has formally recommended that heatwaves and lightning be included in the list of notified disasters under India's Disaster Management Act. This decision responds to a long-standing demand from state governments, recognizing the escalating frequency and severe impacts of these weather events across the country.
Unlocking Full SDRF Utilization for States
The inclusion of heatwaves and lightning as notified disasters will empower state governments to utilize their State Disaster Response Fund (SDRF) money to its full extent for relief and assistance measures. Previously, states could only allocate a maximum of 10 percent of their SDRF funds for these events under the "state-specific disaster" category. With this new classification, states can now deploy the entire SDRF allocation to combat heatwaves and lightning, enhancing their response capabilities significantly.
Current Disaster Framework and State-Level Actions
The existing list of notified disasters includes twelve entries: cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslides, avalanches, cloudburst, pest attack, and frost and cold waves. States have been using SDRF funds to manage these disasters, with limited flexibility for other events. Prior to this recommendation, eleven states had already designated heatwaves as state-specific disasters, while sixteen states had done the same for lightning, utilizing up to 10 percent of SDRF funds for these purposes.
Rising Frequency and Impact Driving the Decision
The 16th Finance Commission's recommendation comes amid growing concerns over climate change effects. The panel noted a substantial increase in the frequency and intensity of hot days, along with a noticeable rise in warm nights over the past decade. Similarly, lightning has emerged as an escalating threat, disproportionately affecting vulnerable populations and causing significant loss of life. The Commission emphasized that the rising severity, frequency, and impact of these events warrant their inclusion in the nationally notified list, as they often exceed the coping capacity of affected communities.
Historical Context and Previous Commission's Stance
This issue had been previously considered by the 15th Finance Commission, which concluded that the existing disaster list largely covered state needs and did not find merit in adding heatwaves and lightning at that time. However, the 16th Finance Commission's shift reflects evolving environmental realities and persistent advocacy from states facing recurrent heatwave and lightning incidents.
Financial Allocations and Funding Structure
The 16th Finance Commission has recommended a total allocation of Rs 2.04 lakh crore for state disaster management over the next five years, marking an increase from the Rs 1.6 lakh crore allocated by the previous Commission for 2021-26. Despite this boost, the Commission has retained the 75:25 funding formula, where the central government contributes 75 percent and states provide 25 percent. This decision comes despite demands from many states to shift to a 90:10 ratio, similar to the arrangement for northeastern and hilly states.
Future Directions in Disaster Financing
Beyond the immediate recommendations, the Commission stressed the importance of exploring alternative disaster financing instruments, including insurance mechanisms, to address the rising costs of disaster management. States will continue to have the flexibility to use up to 10 percent of SDRF funds for other non-notified disasters within their jurisdictions, ensuring a balanced approach to emerging threats.
This landmark decision by the 16th Finance Commission underscores a proactive approach to climate adaptation, providing states with enhanced resources to tackle heatwaves and lightning as critical national disasters.
