Context: Prime Minister Narendra Modi on Tuesday expressed grief over a firecracker explosion in the Banaskantha region of Gujarat that claimed 18 lives.

Meaning of the context: PM Modi also announced an ex-gratia of ?2 lakh from the Prime Minister’s National Relief Fund (PMNRF) for the next of kin of each deceased and ?50,000 to the injured.

Learn more:

• The Prime Minister’s National Relief Fund (PMNRF) is a centrally managed trust established to provide immediate relief and rehabilitation to families affected by natural calamities, major accidents, and other unforeseen events.

Establishment and Evolution

• Origins: The PMNRF was established shortly after independence, in 1948, in response to the displacement and suffering following the Partition. The then Prime Minister, Jawaharlal Nehru, launched the fund based on the principle of public solidarity and voluntary contribution for national emergencies.
• Evolution Over Time: Over the decades, the remit of the PMNRF has expanded. Today, it plays a crucial role in providing relief for disasters such as floods, cyclones, earthquakes, and tsunamis, as well as assisting victims of riots, major accidents, and instances of medical emergencies like heart surgeries, kidney transplants, and cancer treatments.

Funding, Contributions, and Tax Benefits

• Voluntary Contributions Only: PMNRF is unique because it is entirely financed through voluntary contributions from individuals, corporations, trusts, and institutions. It does not receive any budgetary support from the government.
• Tax Exemption: All donations made to PMNRF are eligible for a 100% deduction from taxable income under Section 80(G) of the Income Tax Act, 1961.
• Administration: The fund is administered on an Honorary basis by Joint Secretary to the Prime Minister as Secretary of the fund. He is assisted on Honorary basis by an Officer of the rank of Director.
• Spending: The disbursement out of the fund is made at the discretion of the Prime Minister, and in accordance with the Prime Minister’s directions.
• Auditing: The PMNRF is audited by an independent auditor outside the Government.

Source : Business Standard