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About The PM CARES – Fund 

Context:

Alleging that the PM CARES Fund is shrouded in secrecy, the Congress  asked why it has no transparency and accountability and is not subjected to any audit or covered under the Right to Information (RTI) Act, despite 60% of its funds coming from public sector undertakings (PSUs).

Relevance:

GS II: Welfare schemes for vulnerable Sections

Dimensions of this article:

  1. About PM CARES – Fund
  2. About Prime Minister’s National Relief Fund(PMNRF)
  3. Difference between PMCARES and PMNRF in the below table

About PM CARES – Fund

  • The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) was created on 28 March 2020, following the COVID-19 pandemic in India.
  • The fund will be used for combating, and containment and relief efforts against the coronavirus outbreak and similar pandemic like situations in the future. 
  • Although the documentation for the constitution of the fund has not been made public, the Government of India has stated that the Prime Minister of India is the chairman of the fund, and that trustees include the Minister of Defence, Minister of Home Affairs and Minister of Finance in the Government of India.
  • The PM CARES Fund has faced criticism for the lack of transparency and accountability in relation to its establishment, functioning, and accounts.
  • The total amount of funds donated and the names of donors have not been publicly disclosed, and the fund is privately audited.
  • The Government of India has initially claimed that the fund is a private fund, and denied that the PM CARES Fund is a public fund for the purposes of transparency laws such as the Right to Information Act 2005, even though the Fund uses government infrastructure and the national emblem of the Government of India.
  • In December 2020, the Government of India reversed its stance and admitted that the PM CARES Fund was a public fund, but still refused to disclose information regarding it under the Right to Information Act 2005.
  • There are currently several ongoing cases at the Supreme Court of India and several High Courts in relation to the Fund.

About Prime Minister’s National Relief Fund(PMNRF)

  • Prime Minister’s National Relief Fund (PMNRF) in India is the fund raised to provide support for people affected by natural and man made disasters.
  • Natural disasters covered under this include flood, cyclone, earthquake etc. Man made disasters include major accidents, acid attacks, riots etc.
  • The fund is also allotted to the people for treatment like cancer, kidney transplantation, heart surgery etc.
  • The fund was first consolidated during the time of the first prime minister of India Jawaharlal Nehru.

Difference between PMCARES and PMNRF in the below table;-

PMNRF (Prime Minister National Relief Fund)PM CARES Fund [Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund]
PMNRF (Prime Minister National Relief Fund) was established in January 1948.PM CARES Fund was established on 27th March 2020.
PMNRF was established by the first Prime Minister of India, Jawaharlal Nehru.The PM CARES Fund was established by the current Prime Minister of India, Narendra Modi.
The initial purpose of establishing PMNRF (Prime Minister National Relief Fund) was to help the people displaced due to partition of India and Pakistan.The PM CARES fund was established with the objective of helping people affected by COVID-19 pandemic.
Chairman of the Prime Minister National Relief Fund (PMNRF) is the Prime Minister of India. Other members are from Tata Trusts, representatives of FICCI, Congress President.Chairman of the PM-CARES fund is the Prime Minister of India. The Prime Minister has the power to nominate members. The other members of the PM CARES Fund are the Defence Minister, Home Minister and Finance Minister.
The minimum amount one can donate in the Prime Minister National Relief Fund (PMNRF) is Rs 100.PM CARES Fund allows option for Micro donation, one can donate as low as Rs 10 in the PM CARES Fund.
PMNRF focuses on all kinds of natural disasters and calamities like Cyclones, Earthquakes, Floods, Tsunamis etc. The PMNRF funds are also utilized for acid attack victims, cancer treatments, kidney transplants etc.PM CARES fund is exclusively used for COVID-19 purposes.
The Prime Minister’s National Relief Fund (PMNRF), which was set up in 1948, is not audited by the Comptroller and Auditor General of India (CAG)CARES Fund is not being audited by the CAG, and is being audited by a private party appointed directly by the Government of India instead.

-Source: The Hindu


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