The PM CARES Fund, which was formed at the peak of the Covid-19 pandemic, collected Rs 12,700 crore in the three-year period till FY22. At the end of March 2022, the fund had a balance of Rs 5,416 crore, according to the audited statement of the PM Cares Fund. The PM Cares Fund is audited by New Delhi-based audit firm SARC & Associates.
Out of the total of 12,700 crores, Rs 7,739 crore was spent on buying ventilators, supporting migrants, creating make-shift hospitals, installation of oxygen generation plants, etc.
According to the website of PM Cares Fund, the fund consists entirely of voluntary contributions from individuals/organizations and does not get any budgetary support.
To encourage contribution from individuals and institutions, donations to the PM CARES Fund have been made eligible for 100% exemption under the Section 80G benefits of the Income Tax Act, 1961. The contribution made by companies towards PM Cares Fund is also eligible for Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.
Under CSR, a company having Rs 500 crore net worth, Rs 1,000 crore turnover and Rs 5 crore net profit in the preceding financial year has to spend a minimum 2% of the average net profits made during the 3 immediately preceding financial years.
Donations to Prime Minister’s National Relief Fund (PMNRF), which precedes the PM Cares Fund, are also qualified as CSR funds. However, donations made to CM relief funds in states do not have that eligibility.
PM Cares Fund also gets exemptions under the Foreign Currency Regulation Act (FCRA), and is allowed to receive foreign donations.
According to the PM CARES Fund website, the FCRA exemption is consistent with respect to PMNRF.
Though it was instituted to generate funds for Covid-19 relief works, the PM CARES Fund now has a larger vision of undertaking and support relief or assistance of any kind relating to a public health emergency or any other kind of emergency, calamity or distress, either man-made or natural, including the creation or upgradation of healthcare or pharmaceutical facilities, other necessary infrastructure, funding relevant research or any other type of support.
The Prime Minister is the Chairperson of the Board of Trustees of the PM CARES Fund, and it has three members including veteran industrialist Ratan Tata.