PMO Invokes Parliamentary Rules to Block Questions on Key Government Funds
In a significant development, the Prime Minister's Office (PMO) has informed the Lok Sabha Secretariat that parliamentary questions and matters concerning the PM CARES Fund, the Prime Minister's National Relief Fund (PMNRF), and the National Defence Fund (NDF) are not admissible under specific rules governing business in the Lok Sabha. This move, based on parliamentary procedures, highlights the unique status of these funds, which operate independently of government budgetary allocations.
Parliamentary Rules Cited by the PMO
The PMO's stance relies on Rule 41(2)(viii) and Rule 41(2)(xvii) of the Rules of Procedure and Conduct of Business in Lok Sabha. According to these rules:
- Rule 41(2)(viii) states that questions shall not relate to matters not primarily the concern of the Government of India.
- Rule 41(2)(xvii) prohibits questions on matters under the control of bodies or persons not primarily responsible to the Government of India.
The PMO argues that since these funds are constituted entirely from voluntary public contributions and not from the Consolidated Fund of India, they fall outside the purview of parliamentary scrutiny. This reasoning underscores the distinction between government-managed funds and those sustained by public donations.
Understanding the PM CARES Fund
The PM CARES Fund was established on March 27, 2020, in response to the COVID-19 pandemic, with the primary objective of providing relief in emergency situations. Key aspects include:
- It is registered as a Public Charitable Trust under the Registration Act, 1908.
- The Prime Minister serves as the ex-officio Chairman, with the Ministers of Defence, Home Affairs, and Finance as ex-officio Trustees.
- The fund relies solely on voluntary contributions from individuals and organizations, with no budgetary support from the government.
- Donations qualify for 100% tax exemption under Section 80G of the Income Tax Act and count as Corporate Social Responsibility (CSR) expenditure.
- It has Foreign Contribution Regulation Act (FCRA) exemption, allowing it to accept foreign donations.
- Audits are conducted by independent auditors at the end of each financial year, though there is no statutory audit period prescribed under the Income Tax Act.
Prime Minister's National Relief Fund (PMNRF)
Established in January 1948 to assist displaced persons from Pakistan, the PMNRF now focuses on providing immediate relief to victims of natural calamities and major accidents. Notable features are:
- It operates as a Trust under the Income Tax Act, not constituted by Parliament.
- The fund is managed from the Prime Minister's Office, with the Prime Minister as Chairman, assisted by honorary staff.
- It accepts only voluntary donations, rejecting contributions from government budgetary sources or public sector undertakings.
- Donations are eligible for 100% tax deduction under Section 80(G) of the Income Tax Act.
- The corpus is invested in fixed deposits with banks, and disbursements require the Prime Minister's approval.
National Defence Fund (NDF)
The NDF is dedicated to the welfare of Armed Forces personnel, including paramilitary forces, and their dependents. Its structure includes:
- An Executive Committee chaired by the Prime Minister, with the Defence, Finance, and Home Ministers as members.
- The Finance Minister acts as Treasurer, and a Joint Secretary from the PMO serves as Secretary.
- Accounts are maintained with the Reserve Bank of India, and the fund depends entirely on voluntary public contributions without budgetary support.
Judicial Interpretations and Constitutional Context
In August 2020, the Supreme Court clarified that the PM CARES Fund and the National Disaster Response Fund (NDRF) are distinct entities with different purposes, refusing to order fund transfers. The court noted that while the NDRF is audited by the Comptroller and Auditor General of India, the PM CARES Fund, as a public charitable trust, does not require such audits.
Beyond these funds, the Constitution of India establishes key financial mechanisms:
- Consolidated Fund of India (CFI): Governed by Article 266, it comprises all government revenues and loans, with expenditures requiring parliamentary authorization.
- Contingency Fund of India: Under Article 267, it provides for urgent unforeseen expenditures, managed by the President, with a corpus of ₹30,000 crore.
- Public Account of India: Also under Article 266, it handles funds that do not need parliamentary approval for withdrawals, such as specific-purpose allocations.
This analysis sheds light on the operational frameworks of these funds and the parliamentary rules that govern their scrutiny, offering a comprehensive view for those interested in governance and public policy.
