Availability and Expenditure of Drought Relief Funds in Rajasthan: an exploratory study from 1990-91 to 2014-15

The problem of funding relief expenditure has been recognized by every finance commission since the second because of which each of the successive finance commission has made recommendations with regard to provision for relief expenditure out of the revenues of the states and the extent of support to be extended by the Central Government to the State Government (GoI, 2004). The centre and the states contribute to the Calamity Relief Fund (CRF) to the extent of 75 percent and 25 percent respectively. However, the Twelfth Finance Commission mentions that the states have suggested reducing the contribution of the states to the CRF which shows that the states are trying to reduce their responsibility by reducing their contribution. Rajasthan has demanded successively increased funding from centre (GoR, 2014) as it is situated at most peculiar geographical conditions in term of drought vulnerability. The present study shows that Rajasthan Government largely depended on the Centre for relief related expenditure which has increased over the years while the sacrosanct aim of ‘drought proofing’ is still elusive. In the period of study from 1990-91 to 2014-15, Rajasthan experienced drought two times in 2002-03 and 2009-10 while the scarcity conditions prevailed in the state in one or another area all the time for which state demanded help from centre on regular basis. Mostly the relief works get financed through the help received from the centre and state allocation. However, the present study shows that the amount received for relief remains largely unused and is getting accumulated in the state budget instead of being used to manage the prevailing scarcity and achieving the coveted goals of drought proofing.