The Centre has informed the Supreme Court that thefinances of states and Centre are under severe strain, due to the reduction intax revenues and increase in health expenses on account of the coronaviruspandemic. And Rs 4 lakh compensation can't be paid to all those who died due toCovid-19 as it would exhaust the disaster relief funds, and also impact theCentre and states' preparation to address future waves of COVID-19.
In an affidavit, the Ministry of Home Affairs submittedthat ex-gratia relief under the Disaster Management Act, 2005, to 12 notifieddisasters is provided through the State Disaster Response Fund (SDRF), and theannual allocation for the year 2021-22 for SDRF, for all states combined is Rs22,184 crore. "Therefore, if ex-gratia of Rs 4 lakh is given for everyperson, who lost life due to COVID-19, the entire amount of SDRF may possiblybe spent on this alone, and indeed the total expenditure may go upfurther", said the affidavit.
The MHA argued that the finances of states and Centre areunder severe strain, due to the reduction in tax revenues and increase inhealth expenses on account of the pandemic. MHA stressed that utilisation ofscarce resources for giving ex-gratia, may have unfortunate consequences ofaffecting the pandemic response and health expenditure in other aspects andhence cause more damage than good.
"It is an unfortunate but important fact that theresources of the Governments have limits and any additional burden throughex-gratia will reduce the funds available for other health and welfareschemes", added the affidavit.
The MHA contended that unlike floods, earthquake,cyclone, etc, during the ongoing COVID-19 pandemic, thousands of crores ofrupees have been spent by Centre and states on prevention, testing, treatment,quarantine, hospitalization, medicines and vaccination, etc and it is stillcontinuing. "It is not known that how much more is required. Thus, Centraland State Governments are taking all possible measures to prevent and preparefor future waves of COVID-19", said the affidavit.
The affidavit has been filed in response to a PIL seeking"minimum standards of relief" and ex-gratia payment to Covid-19deceased.
The Centre emphasized the compensation of Rs 4 lakhcannot be paid to those who succumbed to COVID-19, as the disaster managementlaw mandating compensation applies only to natural disasters like earthquake,floods etc. "Due to its scale and impact, it would not be appropriate toapply the scheme of assistance, eligible for natural disasters, to theepidemic", added the MHA.
The MHA said under the Pradhan Mantri Garib Kalyan YojanaPackage announced in March, 2020, the government has provided insurance coverof Rs 50 lakh per person. The MHA contended this insurance cover has been madeavailable from the inception of the pandemic and it provides a sum more than 12times larger than the sum being sought in the writ petition.
Contesting Rs 4 Lakh ex-gratia, the Centre insisted thata broader approach, which involves health interventions, social protection, andeconomic recovery for the affected communities, would be a more prudent,responsible and sustainable approach.
"It is further submitted that, in the case ofvarious disasters, for which such ex-gratia is provided under SDRF norms, thedisaster is of a short and finite duration, occurring and ending quickly. Thereis no precedent of giving ex-gratia for an ongoing disease or for any disasterevent of long duration, extending for several months or years", said theaffidavit.
The petition by advocates Gaurav Kumar Bansal and ReepakKansal had referred to Section 12 of the Disaster Management Act 2005. Thesection said national authority shall recommend guidelines for the minimumstandards of relief for persons affected by disaster, which shall includeex-gratia assistance.