Politics · India Bureau
PM CARES Fund corpus swells on interest as donations falter, spending stalls
The Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund has grown 26 per cent over two years despite falling donations, primarily through accumulated interest earnings. However, fund utilisation has plummeted to just 0.01 per cent of available corpus in the current financial year.
LSN India ·
The PM CARES Fund, established to provide relief during national crises, has accumulated a substantial corpus even as public contributions have declined, official data shows. The fund's balance expanded by approximately one-quarter between 2022-23 and 2024-25, driven largely by interest accrual rather than fresh donations.
While the growing corpus reflects prudent financial management, the utilisation rate has contracted sharply. In 2024-25, the fund deployed just 0.01 per cent of its available balance, marking a significant decline in spending levels compared to previous years. This represents a minimal proportion of the total reserves held for emergency assistance.
The divergence between accumulation and utilisation raises questions about the fund's operational priorities and deployment mechanisms. The high interest earnings indicate substantial idle funds at a time when India faces various humanitarian challenges and disaster-related needs.
The PM CARES Fund, which operates independently outside the Union Budget framework, was created to facilitate quick response to emergencies and assist affected citizens. Its governance structure and spending decisions remain subject to periodic scrutiny regarding transparency and effectiveness of resource allocation.