Prime Minister Narendra Modi’s announcement of a Rs 1,600 crore relief package for Punjab’s flood-hit districts has intensified a political storm over disaster funds, with questions now being raised about the Rs 12,000 crore that the Centre says is already in the state’s disaster kitty.
Finance experts said the State Disaster Response Fund (SDRF), created under the Disaster Management Act, 2005, is intended to provide immediate relief during calamities such as floods, droughts, earthquakes and cyclones. The fund is jointly contributed by the Union and state governments, with Punjab receiving 75 per cent from the Centre and 25 per cent from the state.
Funds are released in two instalments annually, deposited in the state’s public account where they earn interest, and are monitored by a State Executive Committee headed by the Chief Secretary. If disaster losses exceed SDRF resources, states can request additional support from the National Disaster Response Fund (NDRF).
During his visit to Gurdaspur on Tuesday, Prime Minister Modi conducted an aerial survey of flood-hit areas before announcing the Rs 1,600 crore package. He stressed that this was in addition to the Rs 12,000 crore already in the state’s disaster fund. The package includes Rs 2 lakh for families of the deceased, Rs 50,000 for the injured, reconstruction of damaged homes, repair of schools and roads, solarisation of bore pumps, livestock kits and support for orphans under PM CARES.
The announcement triggered immediate political reactions. AAP leaders described the package as “paltry” compared with estimated losses of over Rs 20,000 crore. Finance Minister Harpal Singh Cheema called it a “cruel joke” and demanded the Centre release nearly Rs 60,000 crore pending under various central schemes.
Punjab Agriculture Minister Gurmeet Singh Khuddian clarified that the Rs 12,000 crore referred to by the Centre is part of the disaster relief fund but is insufficient under current norms. “We have announced Rs 20,000 per acre relief for farmers affected by the floods. According to SDRF rules, only Rs 6,800 per acre can come from the fund, and the remaining Rs 13,200 must be borne by the state. We requested the Centre to revise these norms, but have not received any response,” he said.
Meanwhile, Congress leaders criticized the ruling party over misuse of disaster funds. Punjab Congress chief Amarinder Singh Raja Warring demanded a judicial probe into alleged misuse of SDRF funds and warned of criminal action if irregularities were found. He also blamed unchecked riverbed mining for worsening the floods.
Shiromani Akali Dal (SAD) leaders accused the AAP government of mismanaging disaster funds. Farmers’ unions have questioned why large sums remain unspent while thousands of families struggle to recover.
As Punjab reels from the devastation, the debate over relief has shifted from numbers to accountability. With the Centre pointing to Rs 12000 crore funds, Congress alleging diversion, SAD raising questions of mismanagement, the people of Punjab are left waiting for answers.
The key question now is whether the state government will provide a transparent account of SDRF usage—or let the fund itself become another casualty of political crossfire.
