PM CARES donations have dropped, and utilisation is abysmal, Pg7

Key Highlights:

• The PM-CARES Fund released its audited financial statements for the financial years 2023-24 and 2024-25 after a two-year delay.
• The fund's corpus grew by 25.8% to ₹8,453 crore by March 31, 2025.
• Donations to the fund saw a significant drop, with domestic donations falling by 30% to ₹479 crore in FY 2024-25.
• The utilization of available funds was exceptionally low, amounting to just ₹87.5 lakh in FY 2024-25.
• The growth in the corpus was primarily driven by interest earnings, which were almost equal to donations in FY 2024-25.

PMCARES Fund.jpg

Detailed Insights:

• The PM-CARES Fund was established on March 27, 2020, as a public charitable trust to address emergency and distress situations, particularly the COVID-19 pandemic.
• The corpus increased from ₹6,722 crore in 2022-23 to ₹8,453 crore in 2024-25, while utilization dropped from ₹437.9 crore to ₹87.5 lakh in the same period.
• In FY 2024-25, the income received through interest payments was ₹475 crore, nearly matching the ₹480 crore received through donations.
• The sharp increase in interest income is attributed to the fund moving its corpus from savings accounts to fixed deposits in 2023-24.
• The statements indicated that "refunds" from "implementing agencies" were higher than the money utilized, with no public disclosure of these agencies or the purpose of the original allotments.
• The fund is chaired by the Prime Minister as ex-officio Chairperson, with the Ministers of Defence, Home Affairs, and Finance serving as ex-officio trustees.
• Despite its public nature, the PM-CARES Fund is not subject to audit by the Comptroller and Auditor General (CAG) and remains outside the purview of the Right to Information (RTI) Act.

Key Concepts Involved:

• PM-CARES Fund: A public charitable trust created in March 2020 to provide relief and assistance during emergencies and public health crises.
• Public Charitable Trust: A legal entity formed for charitable purposes, often benefiting from tax exemptions, and governed by specific trust laws.
• Right to Information (RTI) Act: A 2005 Indian law that empowers citizens to access information from public authorities, promoting transparency and accountability.
• Comptroller and Auditor General (CAG): India's supreme audit institution responsible for auditing all government receipts and expenditures at both Union and State levels.