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The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) and the Prime Minister’s National Relief Fund (PMNRF) are two crucial government initiatives aimed at providing financial assistance during emergencies. While both funds serve a similar purpose, they differ in their structure, governance, and utilization.
What is the PM CARES Fund?
Objective
The PM CARES Fund was established to create a dedicated emergency fund for dealing with emergencies such as the COVID-19 pandemic and other public health crises, natural disasters, and distress situations.
Key Features
- Established on: March 27, 2020
- Legal Status: Registered as a Public Charitable Trust under the Registration Act, 1908.
- Chairman: The Prime Minister of India serves as the ex-officio Chairman of the PM CARES Fund.
- Trustees: The Ministers of Home Affairs, Finance, and Defence serve as ex-officio Trustees.
Utilization of Funds
The PM CARES Fund is used for:
- Relief and assistance during public health emergencies, disasters, and distress situations.
- Building and upgrading healthcare infrastructure (e.g., hospitals, vaccine production units, medical research).
- Supporting pandemic response measures.
Tax Benefits
- Donations qualify for 80G tax exemptions under the Income Tax Act of 1961.
- Corporate donations are eligible for Corporate Social Responsibility (CSR) deductions under the Companies Act, 2013.
- The Foreign Contribution (Regulation) Act (FCRA), 2010, allows foreign donations.
What is the Prime Minister’s National Relief Fund (PMNRF)?
Objective
The PMNRF was originally established in January 1948 by Jawaharlal Nehru to support refugees from Pakistan after Partition. Over time, it evolved to provide assistance to victims of natural disasters, riots, accidents, and serious medical conditions.
Key Features
- Established on: January 1948
- Legal Status: Not established under any Parliamentary Act; operates based on the Prime Minister’s discretionary powers.
- Chairman: The Prime Minister of India.
- Initial Managing Committee (before 1985): Included the PM, Deputy PM, Finance Minister, Congress President, a Tata Trust representative, and an industry representative. However, in 1985, full control of the PMNRF was delegated to the Prime Minister alone.
Utilization of Funds
The PMNRF is used for:
- Assistance to victims of natural disasters, riots, and severe accidents.
- Medical treatment of individuals suffering from major illnesses like cancer, kidney failure, acid attacks, and heart disease.
Tax Benefits
- Donations qualify for 80G tax exemptions under the Income Tax Act of 1961.
- The fund is not eligible for Corporate Social Responsibility (CSR) deductions under the Companies Act, 2013.
PM CARES vs. PMNRF: Key Differences
| Feature | PM CARES Fund | PMNRF |
| Purpose | Established to tackle emergency and distress situations (e.g., COVID-19 pandemic and future emergencies). | Originally created to support refugees from Partition (1948); now used for disaster relief and medical assistance. |
| Date of Establishment | March 27, 2020 | January 1948 |
| Governance | PM, Home Minister, Finance Minister, and Defence Minister as trustees. | Initially managed by a committee (until 1985). Now, the Prime Minister has full control. |
| Utilization of Funds | Primarily for pandemic response, healthcare infrastructure, and disaster relief. | Assists victims of natural disasters, accidents, riots, and medical treatments. |
| Tax Benefits | Eligible for 80G tax exemptions and CSR deductions. | Eligible for 80G tax exemptions but not for CSR deductions. |
| Foreign Donations | Permitted under FCRA, 2010. | Also accepts foreign contributions. |
| Audit | Audited by M/S SARC Associates Chartered Accountants, New Delhi. | Audited by an independent auditor (currently M/S SARC Associates Chartered Accountants). |
| Right to Information (RTI) | Not covered under RTI. | Not covered under RTI. |
| Government Oversight | Not controlled by Parliament or CAG (Comptroller and Auditor General of India). | Not controlled by Parliament or CAG. |
Similarities Between PM CARES and PMNRF
- Both are trust-based funds managed by the Prime Minister.
- Parliamentary approval is not required for fund disbursement.
- Donations are tax-exempt under Section 80G of the Income Tax Act, 1961.
- Both funds accept foreign contributions.
- Neither fund is subject to the RTI Act.
- The CAG does not audit either fund.
- Funds cannot be used without the Prime Minister’s approval.
- Neither fund is officially part of the government’s consolidated budget.
Who Can Contribute?
- Any individual or organization can donate to PM CARES or PMNRF.
- Donations to PM CARES are eligible for Corporate Social Responsibility (CSR) benefits, whereas donations to PMNRF are not.
Which Fund Serves What Purpose?
Both PM CARES and PMNRF play significant roles in providing relief and financial aid during emergencies. However, they serve different primary objectives:
- PM CARES is more focused on pandemic-related emergencies, public health crises, and disaster preparedness.
- PMNRF is more traditional, used mainly for natural disaster relief, medical assistance, and financial aid for victims of accidents and riots.