Why in news?

The PM CARES Fund received ₹912 crore in contributions during the financial year 2022-23, comprising ₹909.64 crore in voluntary donations and ₹2.57 crore in foreign contributions, reflecting continued support even after the COVID-19 pandemic.

What’s in today’s article?

• Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)
• Criticism of PM CARES Fund
• Conclusion

Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)

• About
  • The PM CARES Fund was established on March 27, 2020, as a Public Charitable Trust to deal with emergencies or distress situations like the COVID-19 pandemic.
  • Donations to the Fund are eligible for 100% tax exemption under Section 80G of the Income Tax Act and qualify as CSR expenditure under the Companies Act, 2013.
  • PM CARES Fund has also got exemption under the Foreign Contribution Regulation Act (FCRA) and a separate account for receiving foreign donations has been opened.
    • This is consistent with respect to the Prime Minister’s National Relief Fund (PMNRF).
    • PMNRF has also received foreign contributions as a public trust since 2011.
• Objective
• To undertake and support relief or assistance of any kind relating to a public health emergency or any other kind of emergency, calamity or distress, either man-made or natural, including the creation or upgradation of healthcare or pharmaceutical facilities, other necessary infrastructure, funding relevant research or any other type of support.
• To render financial assistance, provide grants of payments of money or take such other steps as may be deemed necessary by the Board of Trustees to assist the affected population.
• To undertake any other activity, which is not inconsistent with the above Objects.
• Members
  • The Prime Minister serves as the ex-officio Chairperson, with the Defence Minister, Home Minister, and Finance Minister as ex-officio trustees.
  • The Chairperson of the Board of Trustees (the Prime Minister) has the authority to appoint 3 trustees to the Board of Trustees.
    • Any Trustee appointed shall serve on a non-profit basis.
  • The PMO provides the Trustees with administrative and secretarial support for the Trust's management and administration as needed.
• Performance So Far
  • Total Contributions (Since Inception-23)
    • Total contributions: ₹13,605 crore
    • Voluntary: ₹13,067 crore
    • Foreign: ₹538 crore
    • Total interest income: ₹565 crore
  • Contributions in 2022-23
    • Total contributions: ₹912 crore
    • Voluntary contributions: ₹909.64 crore
    • Foreign contributions: ₹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: As of 2022-23, the Fund had a closing balance of ₹6,284 crore.

Criticism of PM CARES Fund

• Lack of Transparency
  • Critics argue that the Fund is not subject to audits by the Comptroller and Auditor General (CAG) and does not fall under the purview of the Right to Information (RTI) Act.
  • Opposition parties and activists have raised concerns over the lack of public accountability in the use of funds.
• Duplicity of Purpose
  • Critics question the need for PM CARES when existing disaster management and relief funds like the Prime Minister’s National Relief Fund (PMNRF) already exist.
• Utilization of Funds:
  • While significant funds remain unutilized, critics allege that the surplus could have been used to address urgent healthcare or welfare needs.
  • Example: ₹202 crore was refunded from ventilator procurement, raising questions about planning and execution.
• Foreign Contributions:
  • Acceptance of foreign donations has sparked debates over the potential for external influence on domestic decision-making.

Conclusion

The PM CARES Fund has played a crucial role in addressing emergencies like the COVID-19 pandemic, but its lack of transparency and perceived overlap with existing funds have led to criticism. Greater accountability and clarity could help address these concerns and enhance public trust.