PM Cares Fund
PM CARES Fund (Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund) is a public charitable trust established on March 27, 2020 to deal with emergencies or distress situations such as the COVID-19 pandemic. It is a dedicated national fund for emergency relief purposes.
What Is the PM CARES Fund?
PM CARES Fund was created to receive micro-donations from citizens, CSR contributions from companies, and voluntary contributions from PSU employees during the COVID-19 crisis. It provides a dedicated funding mechanism for emergency relief and is separate from the Prime Minister’s National Relief Fund (PMNRF).
The fund is chaired by the Prime Minister and its trustees include the Defence Minister, Home Minister, and Finance Minister.
Key Features
– **Purpose**: emergency relief and rehabilitation for any kind of public health, natural, or man-made disaster
– **Donations**: accepted from individuals and organisations, including foreign donations under FCRA
– **Tax benefit**: donations qualify for 100% deduction under Section 80G of the Income Tax Act
– **CSR eligibility**: contributions count as Corporate Social Responsibility (CSR) spending under the Companies Act
Use of Funds
PM CARES Fund has been used for:
– Procurement of ventilators, PPE kits, testing equipment during COVID-19
– Supporting vaccine development and procurement
– Migrant worker relief during the pandemic
– Health infrastructure strengthening
– State disaster relief assistance
Transparency Concerns
PM CARES Fund has faced scrutiny regarding transparency. Unlike the PMNRF (which is subject to CAG audit), PM CARES has a different governance structure and is audited by an independent auditor rather than the CAG. The government has maintained this is appropriate for a public charitable trust.
PM CARES vs PMNRF
| Feature | PM CARES | PMNRF |
|———|———|——-|
| Established | 2020 | 1948 |
| Audit | Independent auditor | CAG (National Audit) |
| Primary focus | Emergency situations | Broad relief |
| Foreign donations | Allowed | Allowed |
Practical Example
During the second wave of COVID-19 in April-May 2021, PM CARES Fund allocated Rs 201 crore for procurement of 1 lakh portable oxygen concentrators to address the acute shortage of medical oxygen across hospitals in India.
Key Takeaways
– PM CARES Fund is a public charitable trust for emergency relief situations, established in March 2020
– Donations qualify for 100% deduction under Section 80G and count as CSR spending
– Used primarily for COVID-19 relief including medical equipment, vaccine procurement, and migrant support
– Governed by a trust with the Prime Minister as chairman and senior cabinet ministers as trustees
– Questions about its transparency and CAG audit exclusion have been subjects of public debate
