Disaster Risk Reduction (DRR) Financing ( UPSC Prelims)

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News Context

The United Nations Office for Disaster Risk Reduction (UNDRR) has published the Global Assessment Report (GAR) called "Resilience Pays: Financing and Investing for our Future".

India’s Disaster Risk Reduction (DRR) Financing System

DRR Finance Mechanism: India employs a pre-determined, rule-based allocation system from the national level to states and districts, as supported by the Disaster Management Act of 2005.
 Current Allocations: Under the 15th Finance Commission, allocations surpass INR 2.32 trillion (approximately USD 28 billion).
 New Methodology: The 15th Finance Commission introduced a new methodology for state-wise allocations, replacing the previous expenditure-driven approach. This new method integrates capacity, risk exposure, and proneness to hazard & vulnerability (known as the Disaster Risk Index).
 Disaster Mitigation Funds: The 15th Finance Commission recommended establishing the National Disaster Mitigation Fund (NDMF) and the State Disaster Mitigation Fund (SDMF). The central government contributes 75% for all states and 90% for North-Eastern and Himalayan states in the SDMF.
 Global Leadership: India demonstrated the World’s Largest Disaster Risk Reduction Financing System at the 8th session of the Global Platform for Disaster Risk Reduction (GPDRR, 2025). The GPDRR was founded in 2006 to evaluate the implementation of the Sendai Framework for DRR (2015-30). The Sendai Framework succeeded the Hyogo Framework for Action (HFA) 2005-2015, which was adopted at the 3rd United Nations Conference on DRR (2015) in Sendai, Japan.

Uniter Nations office for Disaster Risk Reduction (UNDRR)

Genesis: Initially founded as UNISDR in 1999 to promote an International Strategy for Disaster Reduction (ISDR).
 About: Serves as the primary agency within the UN system for coordinating Disaster Risk Reduction (DRR).
 Mission: Offer leadership and assistance to speed up worldwide initiatives in disaster risk reduction, aiming for inclusive sustainable development and the objectives of the Sendai Framework (2015-30).