PM CARES Fund: Contributions, Achievements, and Concerns

Context :   The PM CARES Fund received ₹912 crore in contributions during the financial year 2022-23. Of this, ₹909.64 crore came from voluntary donations and ₹2.57 crore from foreign contributions. This continued support reflects trust in the fund even after the peak of the COVID-19 pandemic.

What is the PM CARES Fund?

About

The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) was established on March 27, 2020, as a public charitable trust. It was specifically created to deal with emergencies or distress situations like the COVID-19 pandemic.

• Tax Benefits: Donations are eligible for 100% tax exemption under Section 80G of the Income Tax Act and qualify as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.
• Foreign Contributions: The Fund has received an FCRA exemption, enabling a separate account to accept foreign donations. This aligns with practices for the Prime Minister’s National Relief Fund (PMNRF), which has been receiving foreign contributions since 2011.

Objectives

The PM CARES Fund focuses on providing relief and assistance in emergencies, whether natural or man-made. Its objectives include:

1. Emergency Support: Financing healthcare, pharmaceutical facilities, and infrastructure during public health emergencies or other calamities.
2. Financial Assistance: Providing grants or payments to aid affected populations.
3. Research and Development: Funding relevant research to address public health challenges.
4. General Relief Activities: Undertaking any other activities consistent with the Fund’s objectives.

Members

• Ex-Officio Members: The Prime Minister is the Chairperson, and the Defence Minister, Home Minister, and Finance Minister serve as trustees.
• Appointed Trustees: The Prime Minister can appoint three additional trustees to serve on a non-profit basis.
• Administrative Support: The Prime Minister’s Office (PMO) provides administrative and secretarial assistance.

Performance of the PM CARES Fund

Total Contributions (2020-2023):

• Overall Contributions: ₹13,605 crore
  • Voluntary: ₹13,067 crore
  • Foreign: ₹538 crore
• Interest Income: ₹565 crore

Contributions in 2022-23:

• Total: ₹912 crore
  • Voluntary: ₹909.64 crore
  • Foreign: ₹2.57 crore

Disbursals in 2022-23:

• Total Amount Disbursed: ₹439 crore
  • ₹346 crore: PM CARES for children.
  • ₹91.87 crore: Procurement of 99,986 oxygen concentrators.
  • ₹1.51 crore: Contribution refunds.

Closing Balance (2022-23): ₹6,284 crore

Criticism of the PM CARES Fund

1. Lack of Transparency

• Audit Concerns: The Fund is not audited by the Comptroller and Auditor General (CAG).
• RTI Exclusion: It does not fall under the purview of the Right to Information (RTI) Act, raising questions about public accountability.

2. Overlapping Purpose

Critics question the necessity of PM CARES when the Prime Minister’s National Relief Fund (PMNRF) already exists to handle disaster relief.

3. Utilization of Funds

• Underutilization: A significant portion of funds remains unused.
• Refunds: ₹202 crore was refunded from ventilator procurement, suggesting potential inefficiencies in planning.

4. Foreign Contributions

The acceptance of foreign donations has sparked debates about potential external influence over domestic decision-making.

Conclusion

The PM CARES Fund has been instrumental in addressing emergencies like the COVID-19 pandemic, showcasing its value in crisis management. However, concerns over transparency, fund utilization, and its overlap with existing mechanisms need to be addressed. Enhanced accountability and better communication with the public could bolster trust and maximize its impact.