Rapid Fire
PM Cares Funding Dropped in 2022-23
- 30 Dec 2024
- 2 min read
A study of the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES Fund)’s audited statements reveals that voluntary contributions dropped to Rs 912 crore in 2022-23, the lowest since its establishment in March 2020.
- Contributions peaked at Rs 7,184 crore in 2020-21, then fell to Rs 1,938 crore in 2021-22 as the Covid-19 threat diminished.
PM CARES Fund
- About:
- It is a Public Charitable Trust registered on 27th March 2020 under the Registration Act, 1908.
- Objectives:
- It aims to provide relief or assistance including public health crises such as Covid-19, natural disasters, or man-made calamities, and facilitate the development of healthcare, pharmaceutical infrastructure, and other essential facilities.
- It offers financial assistance, grants, or other necessary support to affected populations.
- Members and Governance:
- Chairperson: Prime Minister (ex-officio).
- Trustees: Defence, Home, and Finance Ministers.
- Additional Trustees: Appointed by the Chairperson; serve on a non-profit basis.
- Tax Exemptions:
- Contributions are eligible for 100% tax exemption under Section 80G of the Income Tax Act, 1961 and are considered eligible Corporate Social Responsibility (CSR) expenditures under the Companies Act, 2013.
- It is also exempt under the Foreign Contribution Regulation Act (FCRA) to receive foreign donations, similar to the Prime Minister’s National Relief Fund (PMNRF).
- Criticisms:
- Transparency: Not audited by Comptroller and Auditor General (CAG) and exempt from Right to Information (RTI) Act).
- Purpose Duplication: Overlaps with PMNRF.
- Underutilization: Funds remain unspent despite needs (eg: Rs 202 crore ventilator refund).
- Foreign Donations: Raises concerns about external influence on domestic policymaking.
Read More: PM - CARES Fund
