PM CARES, PMNRF and NDF: Why Parliamentary Oversight Is Barred

According to recent media reports, Prime Minister’s Office (PMO) has informed the Lok Sabha Secretariat that Parliamentary questions regarding the PM CARES Fund, Prime Minister’s National Relief Fund (PMNRF) and National Defence Fund (NDF) are not admissible under the Rules of Procedure and Conduct of Business in Lok Sabha.

Why Parliamentary Questions on These Funds Are Now Inadmissible?

This is based on specific parliamentary rules:

• Rule 41(2)(viii): A question must relate to a matter that is primarily the concern of the Government of India.
• Rule 41(2)(xvii): It must not raise matters under the control of bodies/persons not primarily responsible to the Government.
• The PMO’s Stand:
  • These funds are financed through voluntary public contributions.
  • They do not receive money from the Consolidated Fund of India (CFI).
  • Therefore, they are considered outside direct budgetary accountability to Parliament, leading to non-admissibility of parliamentary questions.

Overview of the Three Funds

• About Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund):
  • Establishment & Objective: Established on 27 March 2020 following the Coronavirus Disease (COVID-19) pandemic to provide relief during emergency or distress situations.
  • Legal Status: Registered as a Public Charitable Trust under the Registration Act, 1908.
  • Composition:
    • Prime Minister — Ex-officio Chairman
    • Minister of Defence, Minister of Home Affairs and Minister of Finance — Ex-officio Trustees
  • Funding Pattern: Receives 100% voluntary contributions from individuals and organisations.
    • No budgetary support from the Government of India.
  • Tax & Corporate Provisions:
    • Donations eligible for 100% deduction under Section 80G of the Income Tax Act, 1961.
    • Recognised as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.
  • Foreign Contributions: Permitted to receive foreign donations under the Foreign Contribution (Regulation) Act, 2010 (FCRA) through a designated account.
  • Audit: Accounts audited annually by an independent auditor.
• About Prime Minister’s National Relief Fund (PMNRF):
  • Origin & Purpose: Established in January 1948 to assist displaced persons from Pakistan.
    • Currently provides relief to victims of natural disasters, major accidents and riots.
  • Funding & Administration: Financed entirely by public donations; no budgetary allocation.
    • Corpus invested in bank deposits; disbursement approved by the Prime Minister.
  • Legal Status: Not created by Parliament; recognised as a Trust under the Income Tax Act, 1961.
    • Functions from the Prime Minister’s Office (PMO).
  • Governance: Prime Minister — Chairman, supported by honorary staff.
  • Tax Provisions:
    • Exempt under Sections 10 and 139 of the Income Tax Act, 1961.
    • Contributions eligible for 100% deduction under Section 80G.
    • Accepts only voluntary and unconditional donations.
• About National Defence Fund (NDF):
  • Objective: Provides welfare assistance to members of the Armed Forces and paramilitary forces and their dependents.
  • Administration: Managed by an Executive Committee:
    • Prime Minister — Chairperson
    • Minister of Defence, Minister of Finance and Minister of Home Affairs — Members
    • Minister of Finance — Treasurer
    • Joint Secretary, Prime Minister’s Office — Secretary
  • Funding:
    • Entirely dependent on voluntary public contributions; no government budgetary support.
    • Accounts maintained with the Reserve Bank of India (RBI).

Key Legal & Constitutional Features

• Trust vs. Statutory Fund: PM CARES / PMNRF: These are Public Charitable Trusts. They are registered under the Registration Act, 1908. They do not owe their existence to an Act of Parliament (Non-Statutory).
  • NDRF (National Disaster Response Fund): This is a Statutory Fund created under Section 46 of the Disaster Management Act, 2005. It is audited by the CAG.
• Audit, RTI, Transparency & Controversies:
  • The Audit Controversy: The Supreme Court (2020) ruled that since PM CARES does not receive government money, a CAG audit is not mandatory.
    • However, the National Defence Fund (NDF), while also a trust, is unique as its accounts are kept with the Reserve Bank of India.
  • RTI Ambiguity: The PMO argues that PM CARES is not a “Public Authority” under Section 2(h) of the RTI Act because it is not funded by the government.
    • The Opposition argues it should be under RTI as it uses the State Emblem, government infrastructure, and “gov.in” domain.

About Constitutional Funds of India

• Consolidated Fund of India (Article 266): Contains all Union Government revenues, loans and loan recoveries.
  • No expenditure can be made without Parliamentary authorization.
• Contingency Fund of India (Article 267): Placed at the disposal of the President of India for urgent unforeseen expenditure pending approval of Parliament.
  • Present Corpus: ₹30,000 crore.
• Public Account of India (Article 266): Includes funds held in trust by the Government (e.g., provident funds, small savings).
  • Withdrawals do not require prior Parliamentary approval.

Comparison with Constitutional Funds

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Supreme Court Observations

In Centre for Public Interest Litigation (CPIL) vs. Union of India, the SC refused to transfer PM CARES money to the NDRF because:

• Nature: NDRF is for specific natural disasters; PM CARES is for broader “emergency/distress” (like biological pandemics).
• Voluntary Spirit: Individuals have the freedom to choose where to donate.
• Audit: Legal provisions for auditing a statutory fund (NDRF) cannot be forcefully applied to a private trust (PM CARES).

Conclusion

The non-admissibility of these funds highlights the tension between executive flexibility and legislative oversight. While the trust model enables rapid emergency response, it bypasses the traditional “power of the purse,” raising vital questions regarding transparency and public accountability in governance.