Introduction

The Prime Minister's National Relief Fund (PMNRF) and the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES) are two funds established to provide assistance during humanitarian crises. Both funds play crucial roles in providing relief, but they differ in several important aspects. This article explores the distinctions between PM CARES and PMNRF, emphasizing their purposes, administration, and transparency.

PMNRF vs. PM CARES: Key Differences

Both the PMNRF and PM CARES serve to provide relief in times of need, but their origins, usage, and administrative processes differ significantly. The PMNRF was established in 1948 to assist displaced people from Pakistan during the partition of India, while PM CARES was established in 2020 to cater to the unique challenges posed by the COVID-19 pandemic and other emergencies.

Establishment and Purpose

PMNRF has a history dating back to 1948, making it one of the oldest national-level relief funds in India. Initially, its purpose was to assist displaced individuals during and post-partition. Today, it is primarily used to provide immediate relief during natural calamities, war, and war-like situations. The fund handles various forms of assistance, including medical treatments and defraying costs of significant incidents.

PM CARES, on the other hand, was launched by Prime Minister Narendra Modi in response to the Wuhan Coronavirus pandemic. It is designed to mobilize resources for urgent assistance during such emergencies. Unlike PMNRF, PM CARES does not require the permission of Congress for its operations.

Administrative Structure and Oversight

PMNRF is not a parliamentary body and is managed by the Prime Minister with the approval of the Cabinet Secretary. The managing committee includes key political figures such as the President of the Congress party and other high-ranking officials. The fund operates independently and its corpus is invested in various forms with scheduled commercial banks.

PM CARES is a new trust with a more modern administrative structure. It does not undergo CAG audit, making it less transparent than PMNRF. The lack of parliamentary oversight and the skip in the usual audit procedures have raised concerns about transparency and accountability.

Financial and Operational Transparency

PMNRF operates under the Income Tax Act and is recognized as a trust. The corpus is entirely derived from public donations and investments in scheduled commercial banks. Its financial details, including donor and beneficiary information, are kept confidential to maintain the fund's effectiveness in crisis situations.

PM CARES is also a trust but is not subject to CAG audit. This has led to debates about its transparency and accountability. Aseem Takyar, a right to information activist, suggested that the lack of transparency could allow for dubious contributions. Senior Advocate Dushyant Dave emphasized that all funds raised by the government should be subject to CAG audit to ensure accountability and transparency.

Conclusion

While both PM CARES and PMNRF serve the dual purpose of providing relief and support during emergencies, their structures and levels of transparency differ. The PMNRF, with its long history and parliamentary oversight, remains a more transparent and accountable fund. In contrast, PM CARES, while designed to address immediate needs, requires more oversight to ensure its resources are used effectively and transparently.