Context:
The Prime Minister’s Office (PMO) has informed the Lok Sabha Secretariat that questions regarding the PM CARES Fund, Prime Minister’s National Relief Fund (PMNRF), and National Defence Fund (NDF) are inadmissible under parliamentary rules, raising concerns regarding transparency and parliamentary oversight.
Key Highlights:
Government Clarification
- The PMO cited Rules 41(2)(viii) and 41(2)(xvii) of the Rules of Procedure and Conduct of Business in Lok Sabha to justify the inadmissibility of questions.
Reason for Inadmissibility
- The funds consist of voluntary public contributions.
- They do not draw money from the Consolidated Fund of India.
- Therefore, they are considered outside the direct financial accountability of the Government of India.
Financial Data
- As of March 2023, the PM CARES Fund held â‚ą6,283.7 crore.
Legal and Institutional Status
- The PM CARES Fund was established on 27 March 2020 during the COVID-19 pandemic.
- It is registered as a Public Charitable Trust.
Judicial and Legal Developments
- In January 2023, the Centre informed the Delhi High Court that:
- PM CARES is not constituted under the Constitution or any parliamentary law.
- It is not owned or controlled by the government.
- The government also argued that PM CARES is not a “public authority” under the RTI Act.
Supreme Court Observations (2020)
- The Court rejected petitions seeking transfer of PM CARES funds to the National Disaster Response Fund (NDRF).
- It observed that:
- PM CARES and NDRF are distinct funds with separate objectives.
- NDRF is audited by the CAG, whereas PM CARES, being a charitable trust, does not require CAG audit.
Significance / Concerns
- Raises debate on transparency, accountability, and parliamentary oversight of public funds.
- Critics argue that funds headed by constitutional authorities should have stronger accountability mechanisms.
Relevant Prelims Points:
- PM CARES Fund
- Full form: Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund.
- Created in March 2020 to support relief during emergencies such as pandemics or disasters.
- Prime Minister’s National Relief Fund (PMNRF)
- Established in 1948.
- Used to provide relief to people affected by natural disasters and medical emergencies.
- National Defence Fund (NDF)
- Set up in 1962 after the Indo-China War.
- Provides support to members of the armed forces and their families.
- Consolidated Fund of India (Article 266)
- All government revenues, loans, and receipts are deposited here.
- Parliamentary approval is required for withdrawals.
- RTI Act, 2005
- Allows citizens to seek information from public authorities.
- Applies only to bodies established by law or substantially financed by the government.
Relevant Mains Points:
Issues of Transparency and Accountability in Public Funds
- Parliamentary Oversight
- Parliamentary questions are a key instrument of executive accountability.
- Restrictions on questioning may weaken legislative scrutiny.
- Institutional Accountability
- Funds associated with constitutional offices raise expectations of greater transparency.
- Public Trust and Governance
- Transparency enhances public confidence in government-led relief initiatives.
- Legal Ambiguity
- Classification as charitable trusts creates a grey area between private entities and public institutions.
Concerns
- Limited RTI applicability.
- Absence of CAG audit mechanisms.
- Potential erosion of democratic accountability.
Way Forward
- Establish clear statutory guidelines for emergency relief funds.
- Introduce transparent disclosure and audit mechanisms.
- Balance operational flexibility with democratic accountability.
- Strengthen parliamentary oversight frameworks.
UPSC Relevance:
- GS Paper II – Polity and Governance
- Parliamentary procedures
- Transparency and accountability in governance