During her budget speech on Tuesday in the Lok Sabha, Finance Minister Nirmala Sitharaman announced that the hill state of Himachal Pradesh, which suffered huge losses due to drastic floods last year, would receive aid through multilateral development assistance for reconstruction and rehabilitation of the state.
The state experienced heavy rains, floods, and landslides last year, resulting in approximately 550 deaths during the monsoon season.
Earlier, the state's Congress government requested the central government to release Rs 9,042 crore as financial assistance following a post-disaster assessment.
The state faced three spells of heavy rainfall last year, exceeding normal levels by 167% and 159% in August. The government in Himachal Pradesh had demanded that the monsoon rains be declared a national disaster.
The state government allocated Rs 4,500 crore from its own funds for flood victims but has accused the central government of not announcing a special relief package and declaring the calamity a national disaster.
Meanwhile, Prime Minister Narendra Modi had earlier accused the state government of selectively distributing central aid meant for flood victims and promised to investigate the matter.
The central government claims to have released Rs 1,762 crore for flood victims, in addition to funds for constructing 2,300 roads and 11,000 houses. However, the BJP has accused the Congress of misusing funds, alleging that they engaged in selective distribution of aid.
What is multilateral development assistance:
Multilateral development assistance refers to financial and technical assistance provided by multiple countries or international organizations to support development projects and programs in a particular country or region.