Transparency in use of funds during pandemic

SYNOPSIS

As India is finally in the Unlock phase 1, after almost 3 months of lockdown due to global pandemic, the government has given details of the measures it proposes to take to address the pain of the Indian economy. The details surly are a little fuzzy and the authorities do need to work more towards it, but still a constant question that howls the citizen of India is about PM CARES fund (created on March 28,2020) and its use.

At the time of its creation, much ado was made about the need for PM-CARES when India already has the PM National Relief Fund (PM-NRF). Most criticism of PM CARES has centered on the lack of transparency of this fund. The details of the donors and the utilization of funds are missing from the government website. The new PM CARES fund is headed by Narender Modi and board members include the defense, finance, and home minister, which are from his party only. Corporations and individuals can contribute, and the government is encouraging small donations also. Many eminent personalities have already donated millions to this fund. But their usage isn’t clear to anyone.

IMPACT

India is under a great fiscal stress, and the objectives of the fund include “creation and upgradation of health care facilities, other necessary infrastructure, funding relevant research and other types of support”. They also include rendering financial assistance, providing grants of payments of money and taking “any such steps as may be deemed necessary by the Board of Trustees” for the affected population. The PMNRF had an unused amount of Rs 3,800.44 crore as of 2019. Despite this, Narender Modi established the PM CARES fund and solicited donations for it. Reportedly, the Indian Railway donated Rs. 151 crore. The army, navy and air force, defense PSUs and employees of the defense ministry have collectively donated Rs. 500 crore. While a significant portion of these contributions has been voluntary, it appears that many government employees weren’t given much of a choice.

When donations are made from taxpayer funds by government bodies, the public has the right to know where the money is going. The Modi government has stated that the CAG will not audit the fund. Rather, it will be audited by independent auditors appointed by the trust. The PM has also refused to make the documents related to the PM CARES fund public.

An estimated 12.2 crore have lost their jobs since the lockdown was announced. No funds from PM CARES were allocated to create jobs for them and even their basic necessities like food and healthcare isn’t taken care of. Though people are praising Modi for his par excellence in handling the global pandemic and spreading awareness about the same, he is heavily criticized for the lack of transparency in the PM CARES fund.   

SUGGESTIONS

1. The PM should publish all information related to the fund on its website and should make it public.
2. The fund should have a regular audit and accountability, so that the people feel comfortable in donating their money and know that it’s been put to good use.
3. The government should commit to make critical areas such as health, infrastructure, employment, food and shelter as their priority.

CONCLUSION

PM CARES comes with a series of problems. The decision-makers belong to one political party. Besides, there is total lack of transparency and accountability about the use of the funds. The allegations of favouritism with regard to spending are particularly of concern. The most worrying part, however, is the fund has clearly not benefited the people who needed it the most. No amount of money has reached to the people who became unemployed, people are still struggling to eat and find shelter on a daily basis, there is a shortage of medical equipments and beds in hospitals for treating the patients, etc. We as the privileged section and the being the citizen of India has helped and donated in PM CARES, but the main question arises that the fund may be called PM CARES, but does the PM really care?