INDIA’S CHANCE OF SUCCOR: PM CARES FUND
Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) – an endeavor undertaken by the national government in the wake of COVID-19 to galvanize and unite the nation when at odds with pandemics, manmade or natural disasters.
Given the circumstance, it is of paramount importance to be aware of them :
- Description
- Aim
- Formation and Structure
- Functioning
- Achievements and Appreciation
- Drawbacks and Criticism of this vital government venture
PM Cares Fund
PM CARES Fund is a public charitable trust run by the national government i.e. BJP. It was registered under the Registration Act, 1908 on the 27th of March 2020 at New Delhi, in order to support the livelihoods of the needy and to finance medical help to many given the scenario of the pandemic.
- It is a national fund – people across the nation can donate.
- Only leaders of the ruling party are the trustees of this organization.
- Only cash can be donated through online transactions.
- Both – domestic and foreign donations are accepted.
- A minimum of Rs.10 is accepted as a donation which is tax-exempt.
Aim of PM Cares Fund
The fund was specially established in an effort to fight the tough conditions brought forward by the pandemic. PMs Cares Fund aims included:
- Supporting migrant workers.
- Research and development of vaccines for COVID-19.
- Providing medical help to those who cannot afford it.
- Purchasing medical equipment for treatment.
- Purchasing the latest sanitization vehicles and equipment to cleanse cities and states.
- Developing hospitals and isolation centres for the pandemic victims.
- Its major aim is to provide relief in such times of distress and low availability of day to day products.
Formation and Structure of PMs Cares Fund
Initiated by the ruling national party i.e. BJP, the trust does not grant positions to opposition party members as trustees.
- Ex-Officio chairman: prime minister Modi.
- EX-Officio trustees: defense minister Raj Nath Singh, home minister Amit Shah, Finance minister Nirmala Sitharaman and the government of India -who all were appointed by the prime minister of India.
- Trustees of the Fund decided to appoint SARC and Associates, as the independent auditors of PM CARES Fund for 3 years.
- These trustees are responsible for the submission and preparation of all financial accounting, filing, and return of finance details.
- Two officials from the prime minister’s office will also be administrating the trust.
- The trust will report to the tax department after being audited by a chartered accountant.
- It is legally compulsory and the ‘corporate social responsibility’ of profit-making firms and Public Sector Undertakings (PSU) to donate and make contributions to the fund.
- The head office of the fund is the Prime Minister’s Office, South Block, New Delhi.
- The Comptroller and Auditor General (CAG) of India has decided not to audit the finances of the trust until asked by the trustees of the organization to do so.
- About thirteen experts will be working pre-Bono (without charge) for the trust.
Functioning
- Contributions can be made via net banking, card payments, and other payment methods such as SBI, etc through the dedicated portals- pmcares.gov.in, pmindia.gov.in, and other collection banks.
- All contributions are exempt from Income tax under the Income Tax Act and there are no online transaction charges.
- Any contribution will be counted as CSR.
- The trust has a permanent PAN: AAETP3993P.
- Formal receipts are received by those who donate a certain amount which can be downloaded immediately after the transaction has been made successful.
- The collected and pooled funds are then allocated to several useful purposes.
Achievements and Appreciations
- Rs 2,000 crores will be used to purchase ventilators to treat pandemic victims.
- Rs 1,000 will be allocated for migrant worker welfare.
- INR 100 crores for the development of a vaccine.
- The step has been appreciated across the country by the general public and various celebrities such as Akshay Kumar, Virat Kohli, Priyanka Chopra, etc.
Drawbacks and Criticisms
Opposition leaders such as Rahul Gandhi and Sonia Gandhi have asked the government to audit the funds and have questioned the establishment of this trust, in the presence of the already existing Prime Minister’s National Relief Fund (PMNRF) and the uses of the funds collected and stored in both the trusts, respectively.
Conclusion
The PM CARES Fund is an encouraging and inspiring initiative taken by the government. It is important for the government to battle the pandemic using the funds collected wisely and for the general public, donators, and opposition to constantly question the use of the funds and to audit it regularly.