PM Cares vs. PMNRF: A Comparative Analysis of Transparency in Indian Government Relief Funds

The Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM Cares), introduced in 2020, and the Prime Minister's National Relief Fund (PMNRF), established in 1948, are two significant government relief funds in India. While these funds serve essential roles in addressing humanitarian crises, their transparency and accountability policies have been subject to scrutiny. This article delves into the establishment, transparency, and policies of both funds to highlight the evolution of relief funding in India.

Establishment and Accountability

PMNRF was introduced by Jawaharlal Nehru in January 1948 following the partition. Until 1985, the fund was managed by the Prime Minister, Deputy Prime Minister, the Finance Minister, the Congress President, and a representative of the Tata Trustees. Post-1985, Prime Minister Rajiv Gandhi took a more prominent role in the fund's management, and it largely remained devoid of oversight. The fund is privately audited by SARC Associates, leading to questions about its transparency and accountability. On the other hand, PM Cares was launched on March 27, 2020, to mitigate the ongoing COVID-19 pandemic. Notably, PM Cares introduces a more transparent model, with trustees from various government ministries and the independent auditor SARC Associates, reducing the concentration of power and enhancing accountability.

Allegations and Facts

The PMNRF has been accused of being an instrument for political purpose, primarily funding the Rajiv Gandhi Foundation (RGF). An examination of RGF's financial reports reveals baffling truths, including donations from various government departments and public sector undertakings. Notably, in the 2006-07 and 2007-08 fiscal years, Government of India's donations to the RGF received public attention. In contrast, during the National Democratic Alliance (NDA) government, the donors' list significantly decreased, underlining a shift in funding dynamics.

PM Cares, however, lacks a similar public scrutiny. Unlike PMNRF, PM Cares funds are not public funds and do not come under the Right to Information (RTI) Act. This leads to questions about why the current government chose to initiate PM Cares rather than enhancing transparency in PMNRF. The fund's trustees include representatives from key ministries, and its independent auditor, SARC Associates, is a firm led by Sunil Kumar Gupta. This structure aims to mitigate the concentration of power and enhance accountability, which was lacking in the PMNRF.

Policies and Transparency

The stark difference between PM NRF and PM Cares lies in their policies and transparency. In the era of BJP governance, the focus has been on democratizing relief funds. PM Cares ensures that the fund's disbursement is scrutinized and managed by multiple stakeholders, significantly reducing the risk of misuse. By contrast, PMNRF's structure, which centered around a single chair, was inherently opaque and highly centralized.

While PM Cares is announced publicly and its disbursements are documented, PMNRF was often criticized for a lack of transparency and accountability. The introduction of PM Cares was seen as a strategic move to avoid the rampant issues associated with PMNRF, such as potential scams and misuse of funds. This shift towards transparency is part of a broader democratic push by the current Indian government, reflecting a commitment to open governance and public scrutiny.

Conclusion

The comparison between PM NRF and PM Cares highlights the evolution of relief funding policies in India. While PMNRF operated with significant autonomy and limited oversight, PM Cares introduces a more transparent and accountable framework. This shift towards democratized and open governance underscores the Indian government's commitment to public trust and the welfare of its citizens during crises.

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