The Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund corpus has surged to a record ₹8,452.07 crore for the financial year 2024-25, despite a significant drop in voluntary donations.
Recent audited statements reveal that the fund’s growth was primarily driven by substantial interest earned from fixed deposits and large refunds from implementing agencies. While government officials maintain that the fund serves as a crucial financial reserve for future emergencies, transparency activists have raised concerns about the minimal expenditure—just ₹87.85 lakh, or roughly 0.01 per cent of the total corpus—and the continued lack of public scrutiny under the Right to Information (RTI) Act.
Unpacking the Numbers: Fixed Deposits and Minimal Spending
A closer look at the audited statements reveals a stark contrast between the PM CARES Fund’s massive accumulation and its actual deployment.
Nearly 93 per cent of the total PM CARES Fund, amounting to roughly ₹7,846 crore, is currently parked in fixed deposits, generating over ₹469 crore in interest alone. Meanwhile, domestic donations fell by nearly 30 per cent to ₹479 crore, and foreign contributions saw a similar decline. The expenditure for the year was remarkably low, with almost the entire spent amount of ₹87.85 lakh directed towards the PM CARES for Children Scheme, which supports minors orphaned by the Covid-19 pandemic.
Transparency activist Anjali Bhardwaj recently highlighted these figures on social media, questioning why such a vast sum of money remains idle and demanding clarity on the ₹324 crore refunded by implementing agencies.
The Origin and Ongoing Transparency Debate
Established in March 2020 to provide relief during the Covid-19 pandemic and handle future distress situations, the PM CARES Fund was structured as a public charitable trust.
Chaired by the Prime Minister with key cabinet ministers as trustees, it relies entirely on voluntary public and corporate donations rather than budgetary support. Since its inception, the fund has faced sustained criticism from opposition leaders and civil rights advocates. The primary point of contention has been its exemption from the RTI Act; the government has repeatedly argued that because the fund receives money from private sources rather than the state exchequer, it does not qualify as a ‘public authority’.
This ongoing opacity, coupled with the recent revelation of enormous unspent reserves, has reignited the debate over accountability in public relief mechanisms.
The Logical Indian’s Perspective
At The Logical Indian, we believe that public trust is the bedrock of any successful democratic initiative. While maintaining a robust financial reserve for unforeseen national emergencies is undeniably prudent, it must not come at the cost of transparency and accountability.
The fact that thousands of crores contributed by well-meaning citizens and corporations sit idle, shielded from the RTI Act, raises valid concerns. Constructive dialogue and proactive financial disclosures can bridge this trust deficit, ensuring that the spirit of kindness and empathy that drove these donations is honoured. Should an emergency fund built on public generosity be subject to greater public scrutiny and accountability?
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