The Central Government of India has made a significant policy change by deciding to accept contributions to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM-CARES) Fund from abroad. This denotes a major turn in policy as, for the past 16 years, India has not accepted any foreign assistance.
Change in Aid Acceptance Policy
The directive now permits foreign governments, NGOs, and individuals of different nationalities to make their contributions to the PM-CARES Fund. The last time India refused to accept foreign aid was when Kerala was struck by a disastrous flood in 2018. The refusal was in line with the disaster aid policy set in December 2004, following a tsunami incident. The Indian Government at that time felt self-sufficient and capable enough to handle the situation without the need for foreign assistance.
Since then, the policy of not accepting aid from foreign governments has been consistently followed by India. However, it is important to note that these contributions to the PM-CARES are not categorized as “aid”. Moreover, this acceptance of foreign contribution is solely applicable to the PM-CARES fund and does not extend to other funds such as the Prime Minister’s National Relief Fund.
What is the PM-CARES Fund?
Established on March 27, 2020, as a public charitable trust, PM-CARES is designed to provide support during public health emergencies or any other kind of emergency, calamity, or distress, irrespective of its origin – natural or man-made. This initiative includes the creation or upgradation of healthcare or pharmaceutical facilities, funding relevant research, or providing other forms of support.
Composition of the PM-CARES Fund
The PM-CARES fund management comprises significant government personnel and nominated trustees. The Prime Minister heads it as the Chairperson, along with the Defence Minister, Home Minister, and the Finance Minister. The Prime Minister also nominates three other trustees, who are distinguished individuals in the fields of research, health, science, social work, law, public administration, and philanthropy.
Benefits of Contributing to PM-CARES
Contributions made to the fund come with notable benefits. For instance, donors can avail a 100% tax exemption on their contributions. It is worth noting that despite the similarities, PM-CARES is fundamentally different from the Prime Minister’s National Relief Fund (PMNRF).
Whilst this new policy indicates a significant change in India’s approach towards accepting financial assistance, it is confined strictly within the boundaries of the PM-CARES fund. It remains unique in its composition, purpose, and benefits to donors, distinguishing itself from other relief funds like the PMNRF.