PM CARES Fund UPSC
According to official records, the PM CARES Fund received foreign donations amounting to ₹ 535.44 crore during the last three years. The fund received ₹ 0.40 crore in the financial year 2019-20, ₹ 494.92 crore in 2020-21, and ₹ 40.12 crore in 2021-22, as per the Receipt and Payment Accounts (Audited) of the PM CARES Fund. In total, the fund received a sum of ₹ 12,691.82 crore in the form of voluntary contributions (₹ 12,156.39 crore) and foreign contributions (₹ 535.43 crore) during the period of 2019-2022.
About the PM CARES Fund
- PM CARES Fund stands for Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund.
- It was formed as a public charitable trust, on March 28, 2020, by the Government of India, under the chairmanship of the Prime Minister, to deal with any kind of emergency or distress situation like the COVID-19 pandemic.
- It was formed to provide relief to those affected by the COVID-19 pandemic and to provide funds to the healthcare sector.
Objectives
- 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.
- To provide financial assistance, grant of money, or any kind of other relief that may be required for the purposes mentioned above.
- To undertake research or training or other related activities in fields that are useful for the purposes mentioned above.
- To undertake any other activity, not mentioned above, which is necessary to fulfill the objectives of the Fund.
Composition
- The PM CARES Fund is led by the Prime Minister of India and has three ex-officio Trustees: the Minister of Defence, the Minister of Home Affairs, and the Minister of Finance.
- Additionally, the Chairperson of the Board of Trustees can nominate three distinguished individuals from various fields to serve as Trustees.
- The 3 nominated trustees to the board, by the PM are – Justice K T Thomas (retd), Kariya Munda, and Ratan N Tata.
- Trustees do not receive payment for their service and are expected to work pro bono.
Funding
- The PM CARES Fund receives contributions from individuals and organizations, including public sector companies, which are eligible for corporate social responsibility (CSR) funding.
- The donations made to the PM CARES Fund are eligible for tax exemption under section 80G of the Income Tax Act, 1961.
- The fund has received an exemption under the FCRA, allowing it to open a separate account for receiving foreign donations from individuals and organizations based in foreign countries. This has made it possible for the PM CARES Fund to accept donations and contributions from foreign sources.
The controversy surrounding the PM CARES Fund
- The fund has been widely debated for its lack of transparency and accountability in the utilization of funds, especially during the COVID-19 pandemic.
- The fund has also been criticized for not being audited by the Comptroller and Auditor General of India (CAG) and for being exempt from the Right to Information (RTI) Act.
- However, the government has defended the formation of the PM CARES Fund, stating that it is a transparent fund that is audited by independent auditors and that the funds are being used for the welfare of the people during the pandemic.
Significance of the Fund
- The PM CARES Fund is significant because it was created to provide emergency relief and assistance to those affected by any kind of emergency or distress situation.
- It played a crucial role during the COVID-19 pandemic in providing financial and medical aid to the affected people and their families, providing ventilators to government hospitals, establishing makeshift Covid hospitals, setting up medical oxygen generation plants, procuring Covid-19 vaccines, and purchasing other Covid-related supplies.
- The fund has also been used to support research and development activities related to the pandemic, including the development of vaccines and medical equipment.
- Additionally, it has provided financial assistance to migrant workers, daily wage earners, and other vulnerable groups affected by the pandemic.
- However, the fund has also faced criticism and controversy regarding its transparency and accountability.
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PM CARES Fund – FAQs
What is the PM Cares fund?
The PM CARES Fund (Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund) is a public charitable trust established in India in March 2020. The fund was created with the objective of providing relief to those affected by any kind of emergency or distress situation, like the COVID-19 pandemic. The Prime Minister is the Chairman of the trust, and its members include the Minister of Defence, Minister of Home Affairs, and Minister of Finance. The fund accepts voluntary contributions from individuals, organizations, and the private sector, and is managed by a trust with the purpose of providing assistance in the form of grants or loans to individuals or organizations engaged in relief or rehabilitation work.
Is the PM CARES Fund eligible for a 100% deduction?
Yes, the PM CARES Fund is eligible for a 100% deduction under Section 80G of the Income Tax Act. This means that individuals and companies who contribute to the fund can claim a deduction of the entire amount donated from their taxable income. However, it is important to note that this deduction is subject to certain limits and conditions as per the provisions of the Income Tax Act.
