Understanding the Differences Between PMNRF and PM CARES Fund in India
India's two prime Minister (PM) funded relief and emergency assistance funds, PM National Relief Fund (PMNRF) and PM CARES Fund (Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund), are both aimed at providing relief and support. However, their origins, purposes, and structures differ significantly. This article aims to provide a detailed comparison and explanation of these differences, offering insights into their roles in India's relief and support infrastructure.
Introduction to PMNRF and PM CARES Fund
PM National Relief Fund (PMNRF): Established in January 1948 by the first Prime Minister of India, Jawaharlal Nehru, the PMNRF was originally created to assist those displaced due to the partition of India and Pakistan. This fund has been a significant part of India's relief efforts over the years, addressing natural disasters, calamities, and specific emergencies.
PM CARES Fund: Established on March 27, 2020, during the early stages of the COVID-19 pandemic, by the current Prime Minister, Narendra Modi, the PM CARES Fund was created to specifically address the immediate needs of those affected by the pandemic. Its establishment aimed to provide a new and effective mechanism for emergency relief and assistance, ensuring rapid and efficient response to critical situations.
Key Differences Between PMNRF and PM CARES Fund
Establishment and Purpose:
PMNRF was established in 1948 to address the needs of people displaced by the partition of India and Pakistan, focusing on providing disaster relief and support for various calamities. In contrast, PM CARES Fund was established in 2020 to cope with the urgent needs arising from the COVID-19 pandemic, with a clear focus on health and humanitarian aid.
Structure and Management:
PMNRF is managed by the Prime Minister of India, with representatives from the Tata Trusts and FICCI, along with the Congress President. The PM CARES Fund, however, is managed by the Prime Minister, who can nominate other members, such as the Defence Minister, Home Minister, and Finance Minister. This leadership difference reflects the strategic and administrative focus of each fund.
Donation and Fund Raising:
Donations to PMNRF must be voluntary, with a minimum donation amount of Rs 100. PM CARES Fund allows for micro-donations, enabling individuals to contribute as little as Rs 10. Additionally, PM CARES Fund can accept contributions from Public Sector Undertakings (PSUs), whereas PMNRF does not. This flexibility in the PM CARES Fund can help in mobilizing more funds quickly.
Transparency and Liquidity:
PMNRF has faced criticism for its low liquidity, with reports indicating that only 15% of the corpus is available for immediate use. PM CARES Fund, however, lacks clarity on its network with hospitals and has thus faced concerns about its liquidity.
Audit and Compliance:
Both funds are audited by M/S SARC Associates Chartered Accountants, but neither is audited by the Comptroller and Auditor General (CAG) of India. While this is a concern, it ensures that the funds are independently reviewed and managed.
Similarities Between PMNRF and PM CARES Fund
Despite their differences, PMNRF and PM CARES Fund share several similarities. Both funds do not require approval from Parliament for spending, and donations to both are exempt from income tax under Section 80G. Additionally, both funds can receive foreign contributions and are exempt from the Foreign Contribution Regulation Act (FCRA). They are also not audited by the CAG, which has been a point of criticism.
Conclusion
While both PMNRF and PM CARES Fund have significant differences in their establishment, management, and purpose, they both play crucial roles in providing immediate relief and support to those in need in India. Understanding these differences can help in better utilizing these funds for the benefit of the Indian populace.