The Government of Nepal’s Prime Minister’s Disaster Relief Fund Operating Rules, 2063 establish a dedicated revolving fund to support people affected by disasters including floods, landslides, fires, earthquakes, storms, droughts, epidemics, road accidents caused by natural events and industrial accidents. The fund may receive contributions from government officials, public and private institutions, businesses, professional groups, political parties, civil society, the general public, foreign governments, international organizations and other approved sources.

The rules allow the fund to be used for rescue operations, protection of property, temporary camps, food, clothing, medicines, educational materials, medical treatment and funeral assistance. It can also finance temporary shelter, rehabilitation, repairs to homes and livelihood-related tools or workshops, as well as public awareness, preparedness and disaster-prevention activities.

At the same time, the framework places clear restrictions on spending. Relief money cannot be used for salaries, allowances, employee benefits, travel expenses, prizes, gifts, unrelated grants or financial assistance not connected to a disaster. A fund management committee is responsible for administration, while accounts are to be maintained in Nepal Rastra Bank or another commercial bank and audited by the Office of the Auditor General.

Distribution of relief money is to be based on the severity and scale of the disaster, available resources and justification for expenditure, with recommendations from central or district disaster relief bodies considered in allocation decisions. The government also retains the authority to issue necessary directions to the fund management committee, creating a formal chain of accountability for emergency spending.