About NDRF

• Under the Disaster Management Act 2005, a financial mechanism has been set up by way of National Disaster Response Fund (NDRF) at national level and State Disaster Response Fund (SDRF) at state level to meet the rescue and relief expenditure during any notified disaster.
• The primary purpose of NDRF is to supplement the SDRF, in case there is a calamity of “severe nature” which requires assistance over and above the funds available under SDRF.
• NDRF is classified in the Public Accounts of the Government of India under “Reserve Funds not bearing interest”.
• The NDRF is funded through the National Calamity Contingency Duty (NCCD) imposed on specified goods and additional budgetary support is provided as and when necessary. 
• The National Executive Committee (NEC) of the National Disaster Management Authority takes decisions on the expenses from the National Disaster Response Fund.

Why in News?

• The Centre has approved the additional Central assistance of over 1,816  crore rupees under the National Disaster Response Fund (NDRF) to 5 States which were affected by the floods, landslides, and cloudbursts in 2022.
• These States are Assam, Himachal Pradesh, Karnataka, Meghalaya and Nagaland. 

https://newsonair.gov.in/News?title=Centre-approves-additional-central-assistance-of-over-Rs.1%2c816-crore-under-NDRF-to-5-States-affected-by-floods%2c-landslides-%26-cloudbursts-in-2022&id=457358