Why in the News?

The Rajya Sabha passed the Disaster Management (Amendment) Bill, 2024 by a voice vote.

What’s in Today’s Article?

• Background (Context of the Article, About Freebies)
• Disaster Management Bill (Objective, Misuse of Funds for Disaster Relief, etc.)
• News Summary

Background:

• In recent years, the practice of offering freebies, free electricity, cash transfers, consumer goods, or subsidies, has become common in Indian politics.
• Political parties often announce such schemes before elections to attract voters. While some of these are legitimate welfare measures, others are considered unsustainable and can strain state finances.
• Critics argue that freebies divert public funds from essential services like health, education, and disaster relief.
• The Supreme Court, former RBI Governors, and even government officials have raised concerns about the long-term economic effects of this culture.
• The latest development in this debate is the passage of the Disaster Management (Amendment) Bill, 2024, which seeks to prevent states from using disaster funds to compensate for populist spending.

About Disaster Management (Amendment) Bill, 2024:

• The Disaster Management (Amendment) Bill, 2024 was passed by voice vote in the Rajya Sabha on March 25, 2025.
• It aims to bring clarity to the use of funds under the State Disaster Response Fund (SDRF) and the National Disaster Response Fund (NDRF).
• Speaking in Parliament, Union Home Minister Amit Shah made it clear that these funds must be used strictly according to Finance Commission guidelines—for genuine disaster relief only.
• He strongly criticised states that send inflated fund requests, citing demands for ₹50,000 crore when guidelines allow only ₹5,000 crore.
• He stressed that states cannot use these funds to compensate for freebies already given by them.
• He also clarified that if states are unclear about the fund usage norms, Chief Ministers should contact him directly, and he will ensure they receive the necessary documentation.

News Summary:

• The Rajya Sabha passed the Disaster Management (Amendment) Bill, 2024 on March 25.
• Home Minister Amit Shah said freebies distributed by states cannot be covered using disaster relief funds. The Finance Commission has fixed norms for SDRF and NDRF fund allocation.
• He urged states to send realistic proposals that comply with these norms.
• Shah defended the PM-CARES fund, calling it transparent and well-managed, in contrast to the earlier PMNRF (Prime Minister’s National Relief Fund), which he claimed was controlled by one political family.
• Opposition leaders criticised the bill, calling it incomplete and demanding that it be sent to a Joint Parliamentary Committee.
• Some MPs also pointed out that the bill doesn’t include manmade disasters, like stampedes or law-and-order failures, in its relief framework.

Significance of the Amendment Bill:

• The new law aims to bring accountability and transparency in how disaster relief funds are used.
• It also signals the Centre’s intent to stop the misuse of public money meant for emergencies.
• At the same time, it brings back the larger debate over the freebie culture in Indian politics.
• While welfare schemes are essential for public support, their funding must come from planned budgets, not from emergency reserves meant for floods, cyclones, or earthquakes.
• The challenge going forward will be ensuring that genuine relief efforts are not hampered, while still putting an end to financial misuse disguised as disaster aid.