PM CARES Fund Donations Drop as Reserves Climb to ₹8,452 Crore

The PM CARES Fund was created in March 2020, at the start of the Covid-19 pandemic. Its official aim was to gather resources for emergency situations, especially public health crises. The fund quickly drew large donations from individuals, companies, and foreign entities.

In its early years, the fund disbursed money for medical equipment, vaccines, and relief efforts. Over time, however, questions began to surface about how much of the money was actually being used and how decisions were made about spending.

By August 2026, several outlets reported a sharp decline in donations to the PM CARES Fund. According to The Hindu, domestic donations fell by 30 percent in the 2024-25 fiscal year, dropping to ₹479 crore. Foreign donations also declined, reaching only ₹92.8 lakh in the same period.

Despite the drop in new contributions, the fund's total balance climbed to ₹8,452 crore by March 2025, as noted by India Today and Indian Express. Most of this money was not spent but held in fixed deposits, generating interest income nearly equal to new donations.

Government officials defended the high reserves, telling India News that the corpus is needed for emergency preparedness. The opposition, particularly the Congress party, criticized the government for using only 0.01 percent of the fund in the last year, calling the low utilization rate unacceptable during ongoing public health and disaster needs.

Public documents reviewed by Mint and others showed that of the ₹10,990 crore available in 2024-25, only ₹87.85 lakh was actually spent. Some funds remain pending, such as ₹835 crore for ventilators supplied to hospitals, according to Business Line.

Audit reports cited by Scroll.in and The Hindu confirmed the fund's swelling size and minimal use, fueling further controversy over transparency and effectiveness.

As of mid-2026, the PM CARES Fund's balance stands at a historic high, with most of the money locked in fixed deposits. New donations have declined markedly, and the fund's utilization rate is at its lowest since inception.

The government continues to argue that keeping a large reserve is prudent for future emergencies. Critics, including opposition leaders, question why so little has been spent despite repeated crises and accuse the fund of lacking accountability.

Key questions remain about whether the government will increase spending from the fund or change its disclosure practices. The opposition is likely to keep pressing for greater transparency and faster deployment of resources, especially if new emergencies arise.