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DIFFERENCE: PM CARES FUND AND PM’S NATIONAL RELIEF FUND

Focus: GS-II Social Justice

Why in news?

On March 28 2020, the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund, or the PM CARES Fund, was set up to tackle distress situations such as that posed by the COVID-19 pandemic.

Who may contribute to the fund?

  • The fund receives voluntary contributions from individuals and organisations and does not get any budgetary support.
  • Donations have been made tax-exempt, and can be counted against a company’s corporate social responsibility (CSR) obligations.
  • It is also exempt from the Foreign Contribution (Regulation) Act, 2010, and accepts foreign contributions.

Who controls the fund?

  • The Prime Minister chairs the fund in his official capacity, and can nominate three eminent persons in relevant fields to the Board of Trustees.
  • The Ministers of Defence, Home Affairs and Finance are ex-officio Trustees of the Fund.

What about Prime Minister’s National Relief Fund (PMNRF)?

  • The Prime Minister’s National Relief Fund (PMNRF) was set up in January 1948, originally to accept public contributions for the assistance of Partition refugees.
  • It is now used to provide immediate relief to the families of those killed in natural calamities and the victims of major accidents and riots and support medical expenses for acid attack victims and others.
  • In 1985, the committee entrusted the entire management of the fund to the Prime Minister, who currently has sole discretion for fund disbursal. A joint secretary in the PMO administers the fund on an honorary basis.

What are some of the Concerns around it?

  • As of December 2019, the PMNRF had an unspent balance of ₹3,800 crore in its corpus. Opposition leaders have questioned the need for a new PM CARES Fund, given that the PMNRF has similar objectives.
  • It is not clear whether the fund comes under the ambit of the RTI Act or oversight by the Comptroller and Auditor General of India, although independent auditors will audit the fund.
  • The PM CARES web page is opaque regarding the amount of money collected, names of donors, the expenditure of the fund so far, or names of beneficiaries.
  • The PMNRF provides annual donation and expenditure information without any detailed break-up.
  • The PM CARES Fund’s trust deed is not available for public scrutiny.
  • The decision to allow uncapped corporate donations to the fund to count as CSR expenditure — a facility not provided to PMNRF or the CM’s Relief Funds — goes against previous guidelines stating that CSR should not be used to fund government schemes.
  • A government panel had previously advised against allowing CSR contributions to the PMNRF on the grounds that the double benefit of tax exemption would be a regressive incentive.

-Source: The Hindu

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