Recent audit reports of the PM CARES Fund have sparked intense debate. Despite a massive corpus of ₹8,452 crore, only ₹87.85 lakh was utilized in the 2024-25 fiscal year, raising questions about its purpose and accountability.
- The PM CARES Fund has accumulated ₹8,452 crore as of March 31, 2025.
- Only ₹87.85 lakh was spent during the 2024-25 financial year.
- 93% of the total fund (₹7,846 crore) is held in Fixed Deposits (FDs).
- The fund remains outside the purview of the Right to Information (RTI) Act.
The latest audit disclosures of the PM CARES Fund have ignited a nationwide debate regarding financial transparency and the efficacy of disaster management. What began with a modest ₹2.25 lakh in 2020 has ballooned into a massive repository of ₹8,452 crore as of March 31, 2025. However, the most striking revelation is that despite this enormous accumulation, the expenditure for the fiscal year 2024-25 amounted to a mere ₹87.85 lakh.
According to the audited accounts released by the government on August 18, the fund's income includes domestic donations (₹479.04 crore) and foreign contributions (₹92 lakh). Additionally, the fund earned ₹475.14 crore in interest. Crucially, approximately 93% of the total fund (₹7,846 crore) is currently parked in Fixed Deposits (FDs), suggesting that the capital intended for urgent disaster relief is being held largely stagnant in banking instruments.
Why This Matters
BozokMedia analysis shows that as India frequently faces natural calamities such as floods, cyclones, and landslides, the minimal utilization of a fund dedicated to such emergencies raises significant policy questions. If the capital is not being deployed during periods of national distress, it suggests either a lack of effective decision-making mechanisms or a fundamental misalignment between the fund's objectives and its actual implementation.
"PM CARES Fund is a veil of transparency. The government releases audited reports, but they are hollow as they lack substantive information." — Professor Ritika Khera, Economist.
Social activists have also voiced concerns regarding the fund's legal status. Activist Anjali Bhardwaj pointed out that while the fund was initially promoted as a government-backed entity to facilitate CSR (Corporate Social Responsibility) contributions from PSUs, the government later retroactively adjusted interpretations to exempt the fund from the Right to Information (RTI) Act. This move has been criticized as an attempt to evade public accountability.
Comparative Expenditure Trends
| Financial Year | Total Expenditure (in ₹ Crores) |
|---|---|
| 2020-21 | 3,976.17 |
| 2021-22 | 3,716.29 |
| 2022-23 | 437.87 |
| 2023-24 | 15.59 |
| 2024-25 | ~0.87 |
The data illustrates a precipitous decline in annual spending. From nearly ₹4,000 crore spent in 2020-21, the expenditure has dwindled to negligible levels. This downward trend prompts critical questions about the existence and effectiveness of the committee responsible for allocating these funds and the criteria used for such decisions.
Frequently Asked Questions
1. Is the PM CARES Fund covered under the RTI Act?
No, the government has categorized it as not being a 'public authority,' thereby keeping it outside the RTI Act's jurisdiction.
2. Where is the majority of the fund kept?
Approximately 93% of the fund is currently held in Fixed Deposits (FDs).
