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The 15th Finance Commission recommended disaster management grants to States based on which principle, recognizing the increasing frequency/intensity of climate-related disasters?
- Equal distribution to all States regardless of risk
- Risk-based allocation considering vulnerability, exposure, capacity
- Allocation based solely on past disaster expenditure
- Allocation based on political considerations
Answer: Risk-based allocation considering vulnerability, exposure, capacity
Disaster management grants: (a) 15th Finance Commission: Recommended disaster management grants to States based on risk-based allocation: (i) Vulnerability: Susceptibility to climate-related disasters (floods, droughts, cyclones), (ii) Exposure: Population, assets at risk in disaster-prone areas, (iii) Capacity: State's ability to prepare for, respond to, recover from disasters, (b) Rationale: (i) Climate change: Increasing frequency, intensity of disasters requires proactive, risk-based approach, (ii) Equity: Vulnerable States (coastal, drought-prone) need more support for disaster preparedness, response, (iii) Efficiency: Risk-based allocation ensures resources directed to areas of highest need, impact, (c) Applications: (i) Preparedness: Grants for early warning systems, disaster-resilient infrastructure, community training, (ii) Response: Funds for emergency relief, evacuation, medical care during disasters, (iii) Recovery: Support for rebuilding infrastructure, livelihoods post-disaster, (d) Challenges: (i) Data availability: Reliable vulnerability, exposure data needed for risk assessment, (ii) Coordination: Ensuring grants complement National Disaster Response Fund, State Disaster Response Fund, (iii) Monitoring: Tracking grant utilization, outcomes in disaster risk reduction, (e) Illustrates adaptive fiscal federalism: FC incorporates climate risk into fiscal transfers; risk-based allocation enables proactive disaster management while respecting State autonomy in implementation.