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19 August 2026

PM CARES Fund financial transparency

The PM CARES Fund is a specific, named institutional mechanism whose financial transparency, utilization, and accountability issues directly relate to core GS2 and GS4 syllabus themes regarding governance and public fund management.

1 min read Day 2 of 2 2 questions 1 prelims

Notes

  • PM CARES Fund was established in March 2020 as a public charitable trust to provide assistance during emergency situations.
  • Financial disclosures for FY 2023-24 and 2024-25 were released after a two-year delay.
  • In FY 2024-25, the fund received ₹480 crore in donations and reported a total income of ₹1,279.9 crore, including interest on deposits.
  • The fund's closing balance reached ₹8,452.06 crore in FY 2024-25, marking a 17.8% increase from the previous year.
  • Utilization of funds has been low, with only ₹87.85 lakh spent in FY 2024-25, representing 0.01% of the closing balance.
  • Since inception in 2020, less than 18.1% of the total income has been spent.
  • The fund has reported significant 'refunds' from implementing agencies, though details regarding the nature, purpose, or identity of these agencies remain undisclosed.
  • The fund is currently not subject to the Right to Information (RTI) Act, limiting public scrutiny of its financial operations and source of funds.
  • Growth in the corpus is increasingly driven by interest income from fixed deposits rather than fresh donations.

Part of a longer story

This is day 2 of 2 in PM CARES Fund financial transparency and accountability, which has been running since 31 July 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Discuss the importance of financial transparency and accountability in public charitable trusts established for disaster management in India. How does the absence of institutional oversight mechanisms impact public trust? 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. Examine the role of the Right to Information (RTI) Act in ensuring the accountability of public funds. In the context of emergency relief funds, evaluate the balance between the need for operational flexibility and the necessity of public disclosure. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Which of the following best describes the legal status of the PM CARES Fund as per its creation?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-08-19/pm-cares-fund-financial-transparency