The PM CARES Fund has witnessed a significant drop in both contributions and expenditures during FY 2024-25, even as its closing balance reached an all-time high of over ₹8,452 crore.
- Total contributions for FY 2024-25 fell to ₹479.96 crore.
- The fund's closing balance hit a record high of ₹8,452.06 crore.
- Annual spending dropped to a five-year low of just ₹87.85 lakh.
New Delhi: The latest audited Receipt and Payment Accounts of the Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund reveal a stark shift in the fund's financial dynamics. In the financial year 2024-25, total contributions to the fund witnessed a significant decline, totaling only ₹479.96 crore. However, in a surprising twist, the fund's closing balance surged to an unprecedented ₹8,452.06 crore, marking a 17.83% increase from the previous year.
A Dramatic Fall in Expenditure
While the corpus is growing, the actual utilization of funds has seen a precipitous decline. During the height of the COVID-19 pandemic in 2020-21, the fund spent approximately ₹3,976.17 crore. In contrast, the spending for FY 2024-25 plummeted to a five-year low of just ₹87.85 lakh, with the bulk of this amount directed toward the 'PM CARES for Children Scheme'.
BozokMedia analysis shows that this trend is largely a reflection of the transition from an active pandemic-response phase to a post-pandemic stabilization period. The massive influx of donations seen during the second wave of COVID-19 has naturally tapered off as the immediate national emergency subsided.
The widening gap between rising interest-driven balances and declining active spending highlights a fundamental shift in the fund's operational lifecycle.
Historical Context and Data Trends
Registered as a public charitable trust on March 27, 2020, the PM CARES Fund was established to provide immediate relief during national emergencies. The fund is chaired by the Prime Minister, with the Defence Minister, Home Minister, and Finance Minister serving as ex-officio trustees.
A comparison of the fund's performance over the years illustrates the massive volatility caused by the pandemic:
| Financial Year | Domestic Donations (Cr) | Foreign Donations (Cr) | Total Spending (Cr) |
|---|---|---|---|
| 2020-21 | 7,183.77 | 494.93 | 3,976.17 |
| 2021-22 | 1,896.76 | 40.12 | 437.87 |
| 2022-23 | 909.64 | 2.57 | 15.59 |
| 2023-24 | 681.81 | 1.13 | 15.59 |
| 2024-25 | 479.04 | 0.09 | 0.08 |
Beyond direct donations, the fund has significantly benefited from interest income. In FY 2024-25, the fund earned ₹475.14 crore in interest, primarily from fixed deposits, which played a crucial role in boosting the overall closing balance.
Frequently Asked Questions
1. Why is the PM CARES Fund balance increasing despite lower donations?
The increase is driven by the massive accumulation of funds from previous years and substantial interest income earned on fixed deposits.
2. Who manages the PM CARES Fund?
The fund is managed by a board of trustees including the Prime Minister, the Home Minister, the Defence Minister, and the Finance Minister.
