Understanding the PM CARES Fund: Setup, Governance, and Financial Status

#GS-2 #Governance & Social Justice #Good Governance #GS-3 #Economy #Taxation #Current Events #National #PM CARES Fund

Key takeaways

The PM CARES Fund spent just ₹87.85 lakh in FY 2024-25 despite earning an income of ₹1,279.9 crore and retaining a closing balance of ₹8,452.06 crore.
Registered on March 27, 2020 under the Registration Act, 1908, the fund functions as a dedicated national public charitable trust for public health crises and calamities.
Donors to the PM CARES Fund receive a 100% tax exemption under Section 80G of the Income Tax Act, 1961, and corporate contributions qualify as legal CSR spending under the Companies Act, 2013.
The trust is chaired by the Prime Minister with the Defence, Home, and Finance Ministers as ex-officio trustees, operating entirely on voluntary contributions without government budgetary support.

The PM CARES Fund recently released its delayed financial audit reports for FY 2023-24 and FY 2024-25.
The financial report shows that the fund spent only ₹87.85 lakh in FY 2024-25, despite receiving an income of ₹1,279.9 crore and maintaining a closing balance of ₹8,452.06 crore.

The PM CARES Fund is a national public charitable trust created to deliver emergency relief and rehabilitation during major health crises, natural disasters, or man-made calamities.

The trust was registered on March 27, 2020, in New Delhi under the Registration Act, 1908.
It was established during the COVID-19 pandemic to build a flexible national fund for strengthening health infrastructure, supporting indigenous medical research, and providing direct financial help.

The main aim of the fund is to offer relief in public health emergencies or disaster situations. This includes upgrading healthcare facilities, funding key research, and providing money directly to affected citizens.

The Prime Minister chairs the trust, while the Ministers of Defence, Home Affairs, and Finance serve as ex-officio trustees without receiving any payment.
The fund receives no government budgetary allocation and runs entirely on voluntary donations from individuals and organizations.
Donors get a 100% tax exemption on their contributions under Section 80G of the Income Tax Act, 1961.
Corporate donations to this fund count toward mandatory corporate social responsibility spending under Schedule VII of the Companies Act, 2013.
The fund is exempt from the Foreign Contribution (Regulation) Act (FCRA), allowing it to receive foreign donations into a dedicated bank account.