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PM Cares Fund; Full Form, Objectives, Funding, Challenges | Current Affairs for UPSC 2023

Aditi Sinha July 24, 2023 11:54 3588 0

PM Cares Fund; Full Form, Objectives, Funding, Challenges | Current Affairs for UPSC 2023

PM Cares Fund

 

PM Cares Fund: The PM CARES Fund is an important initiative started by the Government of India. Its main purpose is to provide help during emergencies like pandemics. It was launched on 27th March 2020. One part of the fund is the PM CARES for Children scheme, which is a public charitable trust. This scheme aims to support children who became orphans or were abandoned during the Covid-19 pandemic. It started on 29th May 2021.

For UPSC aspirants, understanding the PM CARES Fund is crucial as it’s a significant topic that can come up in different stages of the exam. With the country still facing challenges from Covid-19 and dealing with its aftermath, the PM CARES Fund offers an innovative solution to assist during difficult times.

 

What is PM Cares Fund?

 

The PM Cares Fund, an initiative launched by the Government of India, stands as a testament to the nation’s resilience and solidarity during times of crisis. Introduced by the Prime Minister’s Office (PMO) in March 2020, in response to the unprecedented challenges posed by the COVID-19 pandemic, this fund aims to provide much-needed relief and support to those affected by the pandemic and other emergencies. 

 

What is the Full Form of the PM CARES Fund?

 

The full form of the PM CARES Fund is “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund.” As a public charitable trust, the PM Cares Fund has garnered attention and contributions from individuals, organisations, and corporates alike, becoming a crucial instrument in the nation’s efforts to combat and mitigate the impact of various disasters and health crises.

 

PM CARES Fund UPSC

 

The PM CARES Fund holds significant importance in the Current Affairs section for the UPSC Exam 2024. It is a crucial topic for UPSC Prelims, UPSC Mains, and Interviews. As a vital General Knowledge subject, candidates should refer to UPSC Study Material and Notes for thorough preparation. Reviewing UPSC Previous Year Question Papers will help candidates understand the paper patterns and prepare effectively for the examination.

 

Download the PM CARES Fund UPSC PDF

 

Objectives of the PM Cares Fund

 

The objectives of the PM CARES Fund are:

 

  1. Provide immediate relief during disasters and emergencies.
  2. Combat COVID-19 through healthcare support and resources.
  3. Aid frontline healthcare workers and their families.
  4. Allocate funds for healthcare research and development.
  5. Implement technology-driven initiatives for pandemic management.
  6. Offer relief measures for vulnerable groups and daily wage earners.
  7. Strengthen healthcare infrastructure across the nation.
  8. Collaborate with state governments for efficient response.
  9. Maintain transparency and accountability in fund management.
  10. It also addresses other emergencies, including natural calamities, man-made disasters, and more.

 

Objectives of the PM CARES For Children

 

The PM CARES for Children scheme is designed to support and care for orphaned and abandoned children affected by the pandemic. It ensures their well-being and upbringing, covering education and health needs until they turn twenty-three.

 

Here’s how the scheme works:

 

  1. Financial Support: Each child receives a total of Rs. 10 lakh. From the age of eighteen, they receive a monthly stipend until they turn twenty-three. After that, they can use the remaining amount for personal and professional purposes.
  1. Education: Children are enrolled in central government-owned schools, and those below six years get Anganwadi pre-school education. Higher education is supported through scholarship equivalent amounts, and the scheme also takes care of their educational loans.
  1. Health Insurance: Each child receives health insurance of Rs. 5 lakhs, with the premiums covered by the Fund until they reach legal age.
  1. Monthly Stipend: Children receive a monthly stipend of Rs. 4000 to cover their daily needs, including supplementary nutrition.
  1. Education Expenses: The scheme exempts all tuition fees for children admitted to private schools and provides free textbooks and uniforms for government school students under the scheme.
  1. Emotional Support: The scheme offers counselling and emotional support to the children to help them cope with their situation.
  1. Implementation: The Ministry of Women and Child Development implements and executes the PM CARES for Children scheme.

 

Overall, the scheme aims to provide comprehensive support to these children, ensuring a brighter and more sustainable future.

 

What is the PMNRF?

 

The PMNRF, which stands for the Prime Minister National Relief Fund, is a public charitable trust established in India. It was inaugurated in January 1948 by India’s first Prime Minister, Jawaharlal Nehru. The main objective of the PMNRF is to provide immediate relief and assistance during times of natural calamities, disasters, and other emergencies that affect people across the nation. The fund operates on voluntary donations from individuals and organisations, and its primary focus is on alleviating the suffering of those impacted by various crises, including floods, earthquakes, droughts, and other calamities.

 

The Differences Between PM Cares Fund and PMNRF

 

Confusing PMNRF (Prime Minister National Relief Fund) with PM CARES is a common mistake, as their aims are similar, but they are distinct entities. There are several notable differences between PMNRF and PM CARES Fund.

Comparison between PMNRF and PM CARES Fund

Prime Minister National Relief Fund (PMNRF) Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund
Jawaharlal Nehru introduced the PMNRF. Narendra Modi introduced the PM CARES Fund.
Inaugurated in January 1948. Introduced on 27th March 2020.
Aimed to provide relief to displaced people during the India and Pakistan Partition. Established to provide relief during any Covid-19 emergencies.
The Prime Minister is the chairperson, and other members include the spokesperson of FICCI, TATA members, and the Congress President. The Prime Minister is the head, along with Home, Defence, and Finance Ministers. The Prime Minister can nominate other members.
Accepts donations starting from Rs. 100. Accepts micro-donations, starting from as little as Rs. 10.
Can be utilised for various natural calamities and cases such as kidney transplants, cancer treatments, and acid attack victims. Established for emergencies related to the Covid-19 Pandemic and can be utilized for future emergencies.
Associated with all government hospitals (both central and state) and includes some private hospitals. Connection with hospitals is ambiguous.
Reportedly running low on liquidation, with only 15% in the Fund. A significant amount is invested. No reports on restrictions, implying that the Fund can be utilized without restrictions.
Only allows donations made voluntarily by individuals and companies. Accepts donations from individuals, companies, and Public Sector Undertakings.
At present, the main objective of the PMNRF is to provide immediate relief and assistance during times of natural calamities, disasters, and other emergencies that affect people across the nation.  Currently, the primary aim of the fund is to address any emergency or distress situation, such as the COVID-19 pandemic, and provide assistance and relief to those affected.

The Similarities Between the PM CARES Fund and PMNRF

 

There are various similarities between the PMNRF and the PM CARES Fund which are listed below.

 

  1. Both PMNRF and PM CARES are established as funds.
  2. Neither PMNRF nor PM CARES Fund receives any budgetary support.
  3. Both funds are eligible to accept foreign aid, but these contributions are not included in the Foreign Contribution Regulation Act (FCRA).
  4. Donations to both PMNRF and PM CARES Fund are 100% exempt from Income Tax under Section 80G of the Income Tax Act.
  5. Utilizing funds from both PMNRF and PM CARES Fund requires directions from the Prime Minister.
  6. Expenditures from both funds do not require parliamentary approval.
  7. PMNRF does not fall under the Right to Information (RTI) Act, and the application of the RTI Act to the PM CARES Fund is ambiguous.
  8. Both funds are audited by chartered accountants from SARC Associates.

 

Funding of PM CARES Fund

 

The PM CARES Fund is primarily supported by domestic donations, with contributions accepted starting from the smallest denomination of Rs. 10 to encourage broader participation. 

 

  • Companies that donate to the PM CARES Fund have the assurance from the Ministry of Corporate Affairs that these contributions will be accounted for as Corporate Social Responsibility (CSR) expenditure.
  • In accordance with CSR regulations, companies with a net profit of Rs. 5 crores or more are mandated to spend a minimum of 2% of their average profits from the last three years on CSR expenditure annually. 
  • By donating to the PM CARES Fund, companies can fulfil their CSR obligations and contribute to the fund’s initiatives.
  • Additionally, the PM CARES Fund also accepts contributions from Public Sector Undertakings (PSUs), further increasing its financial resources to address various emergency situations.
  • It is essential to note that the PM CARES Fund is a government fund and is distinct from the Consolidated Fund of India. 
  • Contributions to the PM CARES Fund are utilized for specific purposes determined by the Prime Minister’s Office (PMO) to provide relief and support during emergencies and other crises.

 

The Ambiguous Exclusion From The Ambit Of Right to Information Act

 

The Right to Information (RTI) is a fundamental right under Article 19 (1) of the Indian Constitution. In India’s democratic nature, citizens have the fundamental right to question and seek information about the workings of the Indian Government.

 

  • PMNRF does not fall under the purview of the RTI Act.
  • PM CARES Fund does not explicitly state its exclusion from the RTI Act.
  • Recent reports indicate that access to information about the PM CARES Fund was denied when sought through the RTI Act.
  • The denial of information was based on certain technicalities.
  • This raises questions about the level of transparency and accountability associated with the PM CARES Fund.

 

Challenges to the PM CARES Fund

 

The PM CARES Fund and the PM CARES for children scheme are innovative initiatives. However, since its inception, the PM CARES Fund has faced scrutiny from opposition parties, who continuously question its legitimacy.

 

  • The PM CARES Fund is claimed to be a public charity fund, despite having the Prime Minister and other important ministers as Trustee members.
  • Similar to PMNRF, the PM CARES Fund exempts foreign contributions from the Foreign Contribution Regulation Act (FCRA).
  • Unlike PMNRF, the PM CARES Fund accepts contributions from Public Sector Undertakings.
  • Ambiguity surrounds whether the PM CARES Fund falls under the Right to Information (RTI) Act or not, raising questions about transparency and accountability.
  • The PM CARES Fund’s promotion by Indian Embassies worldwide under the Prime Minister’s advice has raised concerns about its functioning as a public charitable trust.
  • The utilization of funds is an issue, as only 36% of the total amount collected between 27th March 2020 and 31st March 2021 has been spent, leaving questions about the remaining funds.
  • Despite being a novel effort, the PM CARES Fund remains ambiguous and subject to scrutiny regarding its transparency and operations as a public charitable trust.

 

Frequently Asked Questions

The government will provide a monthly allowance to children who lose their parents until they reach the age of 18. Upon reaching the age of 23, they will receive a lump sum amount of Rs 10 lakh from the PM CARES Fund. Additionally, the government will offer free education to these children.

The Prime Minister has appointed three trustees to the Board - Justice K T Thomas (retd), Kariya Munda, and Ratan N Tata.

The main difference between PM CARES and PMNRF is their scope and purpose. PMNRF focuses on providing aid during all types of natural disasters and calamities, including cyclones, earthquakes, floods, and tsunamis, and also supports acid attack victims, cancer treatments, kidney transplants, etc. On the other hand, PM CARES Fund is exclusively used for COVID-19-related purposes.

PM CARES Fund is a public charitable trust.

The purpose of the PM CARES Fund is to provide relief and assistance during emergencies and distress situations, with a particular focus on addressing the challenges posed by the COVID-19 pandemic and other similar emergencies.

The PM CARES Fund was launched by the Hon'ble Prime Minister of India, Narendra Modi.

The Government of India directly appoints a private party to conduct the audit of the PM CARES Fund and not the Comptroller and Auditor General (CAG) of India.

The 'PM-CARES for Children' scheme will provide support to all children who have lost both parents, surviving parent, or legal guardian/adoptive parents due to Covid-19.
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