Does the PM Cares Fund require an audit by the CAG? What the Supreme Court said
The Supreme Court rules that the central government has the freedom to decide the financial measures to be adopted to deal with Covid-19 pandemic
The PM Cares Fund is a voluntary fund registered as a public charitable trust necessitated due to the emergent situation borne out of Covid-19 pandemic, the Supreme Court said on Tuesday, ruling that it is not open for the petitioner to question the government on the wisdom to create PM Cares Fund.
Any individual or institution can contribute to PM cares. It does not get any budgetary support and no government money is credited in the PM Cares Fund.
How is it different from National Disaster Response Fund (NDRF)?
The nature of NDRF and PM CARES Fund are entirely different. The NDRF is a statutory fund created under the Disaster Management Act (DM Act).
Does PM Cares require audit by the Comptroller & Auditor General of India (CAG)?
Since it is a public charitable trust with voluntary donations and does not receive any government support, no CAG audit is required.
In case of NDRF, the guidelines issued by the central government as per DM Act specifically provide for audit of the NDRF by CAG.
Is existence of PM Cares a bar on making contributions to NDRF?
The existence of PM Cares fund is not a bar to contribute to NDRF. Any contribution, or grant of any individual or institution is not prohibited to be credited into the NDRF and it is still open for any person or institution to make contribution to the NDRF in terms of Section 46(1)(b) of the DM Act. The guidelines for administration of NDRF framed by the Centre in 2010-11 and modified in 2015-16 provide that any grant that may be made by any person or institution for the purpose of disaster management shall be credited into the NDRF.
Can NDRF be used for providing assistance in the fight of Covid-19?
The Centre can very well utilise NDRF for providing assistance in the fight of Covid-19 pandemic by way of releasing fund on the request of the States as per new guidelines.