PM – CARES

August 27, 2021
Posted by: OptimizeIAS Team
Category: DPN Topics

PM – CARES

Subject – Governance

Context – The Supreme Court on Thursday asked the Union government if it can immediately release money from the PM-Cares Fund for the education of children who have been orphaned or have lost legal guardians or either of their parents during the COVID¬19 pandemic.

Concept –

The government has set up the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES Fund) to deal with any kind of emergency or distress situation like posed by the COVID-19 pandemic.
The Fund is a public charitable trust with the Prime Minister as its Chairman. Other Members include Defence Minister, Home Minister and Finance Minister.
The Fund enables micro-donations as a result of which a large number of people will be able to contribute with the smallest of denominations.
The Fund will strengthen disaster management capacities and encourage research on protecting citizens.
The Ministry of Corporate Affairs has clarified that contributions by companies towards the PM-CARES Fund will count towards mandatory Corporate Social Responsibility (CSR) expenditure.
It can avail donations from the foreign contribution and donations to fund can also avail 100% tax exemption.

PMNRF (Prime Minister National Relief Fund)	PM CARES Fund (Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund)
PMNRF (Prime Minister National Relief Fund) was established in January 1948.	PM CARES Fund was established on 27th March 2020.
PMNRF was established by the first Prime Minister of India, Jawaharlal Nehru.	The PM CARES Fund was established by the current Prime Minister of India, Narendra Modi.
The initial purpose of establishing PMNRF (Prime Minister National Relief Fund) was to help the people displaced due to partition of India and Pakistan.	The PM CARES fund was established with the objective of helping people affected by COVID-19 pandemic.
PMNRF focuses on all kinds of natural disasters and calamities like Cyclones, Earthquakes, Floods, Tsunamis etc. The PMNRF funds are also utilized for acid attack victims, cancer treatments, kidney transplants etc.	PM CARES fund is exclusively used for COVID-19 purposes.
Chairman of the Prime Minister National Relief Fund (PMNRF) is the Prime Minister of India. Other members are from Tata Trusts, representatives of FICCI, Congress President.	Chairman of the PM-CARES fund is the Prime Minister of India. The Prime Minister has the power to nominate members. The other members of the PM CARES Fund are the Defence Minister, Home Minister and Finance Minister.
The minimum amount one can donate in the Prime Minister National Relief Fund (PMNRF) is Rs 100.	PM CARES Fund allows option for Micro donation, one can donate as low as Rs 10 in the PM CARES Fund.

Similarities between PMNRF and PM-CARES Fund

Spending from both the PM CARES Fund and PMNRF does not require approval from Parliament.
Donations to both PMNRF and PM CARES Fund will be exempted from Income Tax under Section 80G.
Funds from both PM Cares and PMNRF cannot be utilized without the directions of the Prime Minister.
M/S SARC Associates Chartered Accountants, New Delhi are the auditors of both PMNRF and PM CARES fund.
Donations by companies to both PMNRF and PM CARES Fund are classified as Corporate Social Responsibility (CSR) under Companies Act 2013.
Both PMNRF and PM CARES do not receive budgetary support.
Both PMNRF and PM CARES are set up as trusts.
Both PM CARES and PMNRF can receive foreign contributions. They are exempted from the Foreign Contribution Regulation Act (FCRA).
Both PM CARES and PMNRF are not audited by Comptroller and Auditor General (CAG).
Both PM CARES and PMNRF does not come under the Right to Information (RTI).