Important for GS Prelims: GOVERNANCE
Overview
- Full Form: Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund.
- Established: 27 March 2020 during the COVID-19 pandemic.
- Nature: A Public Charitable Trust registered under the Registration Act, 1908.
Objectives
- Provide financial assistance to people affected by emergencies and disasters.
- Support creation and upgradation of healthcare and pharmaceutical infrastructure.
- Fund research, disaster preparedness, and other emergency response activities.
- Undertake any activity consistent with the objectives of the Trust.
Composition of the Trust
- Chairman (Ex-officio): Prime Minister of India.
- Ex-officio Trustees:
- Minister of Defence
- Minister of Home Affairs
- Minister of Finance
- The Prime Minister may nominate up to three eminent persons as Trustees from fields such as research, science, health, social work, law, public administration, or philanthropy.
Key Features
- Funded entirely through voluntary contributions from individuals and organizations.
- Receives no budgetary support from the Government of India.
- Eligible to receive domestic and foreign donations.
- Contributions qualify for:
- 100% deduction under Section 80G of the Income Tax Act, 1961.
- Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.
- Exempt under the Foreign Contribution (Regulation) Act (FCRA) for receiving foreign contributions.
Audit
- The accounts are audited by an independent Chartered Accountant appointed by the Trustees.
- It is not audited by the Comptroller and Auditor General (CAG) as it is constituted as a public charitable trust.
PM CARES Fund vs PM National Relief Fund (PMNRF)
| PM CARES Fund | PM National Relief Fund (PMNRF) |
| Established in 2020 | Established in 1948 |
| Public Charitable Trust | Public Charitable Trust |
| Created for all kinds of emergencies, including pandemics | Primarily for relief during natural calamities and medical assistance |
| Eligible for CSR contributions | Not eligible for CSR contributions |
Conclusion:
- PM CARES Fund is a voluntary public charitable trust established in 2020 to mobilize resources for emergency relief, disaster response, and capacity-building during national emergencies.
| This concept has been elaborately discussed in the following article: PM CARES Fund: Transparency Debate & Audit Disclosure |