PM CARES Fund: Features, Accountability & PM CARES vs NDRF

Context:

The PM CARES Fund (Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund) has recently attracted attention as its total contributions declined to ₹479.96 crore in FY 2024–25, while expenditure fell to just ₹87.85 lakh. At the same time, its closing balance reached a record ₹8,452.06 crore. The figures have renewed debate over the balance between rapid emergency response and democratic accountability.

What is PM CARES Fund?

• • • The PM CARES Fund was established on 27 March 2020, following the COVID-19 outbreak, to deal with emergencies and distress situations. It is registered as a public charitable trust under the Registration Act, 1908.
    • The Prime Minister is the ex-officio Chairman, while the Defence Minister, Home Minister and Finance Minister are ex-officio trustees.

Key Features:

• • • The Fund receives voluntary contributions from individuals and organisations.
    • It receives no budgetary support from the government.
    • Donations are eligible for 100% deduction under Section 80G of the Income Tax Act, subject to applicable provisions.
    • Contributions can qualify as CSR expenditure under the Companies Act, 2013.
    • It can receive eligible foreign contributions under the FCRA framework.
    • Its accounts are audited by an independent auditor.

How Does It Enhance Emergency Response?

As an extra-budgetary mechanism, PM CARES can mobilise resources without depending entirely on the normal budgetary cycle. This provides:

• • • Speed: Faster mobilisation during sudden crises.
    • Flexibility: Resources can be deployed for diverse emergency needs.
    • Additional funding: It supplements existing government mechanisms.
    • Public participation: Citizens and organisations can directly contribute to emergency relief.

Thus, non-statutory mechanisms can be valuable when conventional administrative procedures may be too slow for an immediate crisis.

Accountability Concerns:

• • • However, flexibility must be accompanied by transparency. Since PM CARES is not funded through the Consolidated Fund of India, questions regarding its parliamentary scrutiny have generated debate. The reported position of the PMO is that questions concerning PM CARES, PMNRF and NDF are inadmissible under specified Lok Sabha rules.
    • A second concern relates to audit. PM CARES is audited by an independent auditor, whereas statutory funds such as the National Disaster Response Fund (NDRF) operate under a different legal and audit framework.
    • The record corpus alongside very low expenditure also raises questions about fund utilisation, disclosure and outcome-based accountability.

Supreme Court’s View:

In 2020, the Supreme Court declined to direct transfer of PM CARES funds to the National Disaster Response Fund (NDRF), observing that the two are distinct funds with different purposes. The Court also noted their different legal and audit frameworks.

PM CARES vs NDRF:

Conclusion:

PM CARES provides quick and flexible support during emergencies. Greater transparency, accountability and proper utilisation of funds can further strengthen its credibility.