Relevance: GS II (Parliamentary Oversight & Accountability) | Source: Indian Express

1. The Context: Questions “Not Admissible”

The Prime Minister’s Office (PMO) has informed the Lok Sabha Secretariat that parliamentary questions related to three specific funds—PM CARES, PMNRF, and NDF—are “not admissible.”

• The Reason: The government argues that these funds are “Public Charitable Trusts” constituted through voluntary donations, not budgetary allocations from the Consolidated Fund of India.
• The Logic: Since the funds are technically “private” entities managed by trustees (even if they are Ministers), they do not fall under the direct administrative responsibility of the Government of India, exempting them from parliamentary scrutiny.

2. The Controversy: Public Office, Private Fund?

Critics argue this creates a paradox of accountability.

• Official Machinery: The funds are headed by the Prime Minister (ex-officio), use the national emblem, and are administered by PMO officials on an honorary basis.
• CSR Loophole: Corporate donations to PM CARES are counted as Corporate Social Responsibility (CSR) expenditure (unlike Chief Minister’s Relief Funds), yet the fund itself claims exemption from the RTI Act and CAG Audit.

3. The Three Funds in Focus

• PM CARES (2020): Created specifically for emergencies like COVID-19. Trustees include the PM, Home Minister, Defence Minister, and Finance Minister.
• PMNRF (1948): Established by Jawaharlal Nehru for relief to families of those killed in calamities or riots.
• National Defence Fund (1962): Setup for the welfare of Armed Forces and Para Military forces.

4. Legal Status (RTI & Audit)

• RTI Status: The government maintains that PM CARES is not a “Public Authority” under Section 2(h) of the RTI Act because it is not “substantially financed” by the government.
• Audit: These funds are audited by private chartered accountants, not by the Comptroller and Auditor General (CAG) of India, unlike the National Disaster Response Fund (NDRF).

UPSC Value Box

Q. With reference to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund), consider the following statements:

1. It is a statutory fund constituted under the Disaster Management Act, 2005.
2. The Prime Minister is the ex-officio Chairman of the PM CARES Fund.
3. The accounts of the fund are audited by the Comptroller and Auditor General (CAG) of India.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Correct Answer: (b)