Context: In 2022-23, the PM CARES Funds received Rs 909.64 crore as voluntary contributions and Rs 2.57 crore as foreign contributions.
Relevance of the Topic: Prelims: Key aspects of the PM CARES Funds.
About the PM CARES Fund
- PM Cares (Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund) was created on 27 March 2020, following the COVID-19 pandemic in India.
- It was registered as a Public Charitable Trust under the Registration Act, 1908.
- Objectives: A dedicated fund with the primary objective of dealing with any kind of emergency or distress situation (either man-made or natural) and to provide financial assistance to the affected population.
Key details of the PM CARES Fund
- The fund consists entirely of voluntary contributions from individuals/organisations and does not get any budgetary support. The fund will be utilised in meeting the above objectives.
- Donations to PM CARES Fund would qualify for 80G benefits for 100% exemption under the Income Tax Act, 1961.
- Donations to PM CARES Fund will also qualify to be counted as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.
- PM CARES Fund has also got exemption under the FCRA (Foreign Contribution (Regulation) Act, 2010 and a separate account for receiving foreign donations has been opened.
- This enables PM CARES Fund to accept donations and contributions from individuals and organisations based in foreign countries.
- This is consistent with respect to the Prime Minister’s National Relief Fund (PMNRF). PMNRF has also received foreign contributions as a public trust since 2011.
- Prime Minister is the ex-officio Chairman of the PM CARES Fund. The Minister of Defence, Minister of Home Affairs and Minister of Finance, Government of India are ex-officio Trustees of the Fund.
Issues arising in the PM CARES Fund
- Ambiguity in legal status: The PM CARES Fund is not created under any specific law, statute of Parliament or State legislature, which has raised questions about its legal and constitutional standing.
- Definition of State: Fund is using government symbols, domain name (gov.in), and its association with high public and constitutional functionaries creates confusion about whether it qualifies as a "state" under Article 12 of the Constitution.
- Not a public authority under RTI Act: The Fund is not classified as a "public authority" under the RTI Act, limiting public access to its contributions, operations and decision-making processes. It is also exempted from audit by India's Comptroller and Auditor General (CAG).
- Conflict with PMNRF: For similar purposes and grounds, we already have the Prime Minister National Relief Fund, PM Cares, a parallel channel for contribution without public scrutiny.
- Tax exemptions: Contributions to the Fund enjoy tax exemptions under the Income Tax Act, Companies Act etc. which is an indirect form of subsidy.
- Information Disclosure: Third-party information regarding contributions is not disclosed, limiting transparency and public scrutiny of the fund’s activities.