CSR funds not used for carrying out govt plans: MoS Finance

The government on Tuesday notified Parliament that business social obligation (CSR) funds are not used for implementing the government’s main schemes.Minister of State for Finance and Corporate Affairs Anurag Singh Thakur, during Question Hour in the Rajya Sabha, stated there is a clear meaning in the Arrange 7 of the Companies Act 2013 where all CSR funds can be spent.”I wish to say the funds are not utilized for executing federal government schemes … There should not be a misconception that CSR funds are used for carrying out federal government plans. The government makes adequate financing for various programs,” he said.The CSR funds are used for the advancement of areas as part of social duty for which there is a company’s board-driven policy, he said.So far, 60 per cent of the funds are spent through executing agencies and 40 percent by business through its different bodies, he added.Further, the minister stated that there was no arrangement of executing companies and information of NGOs when the Business Act was available in 2013. Nevertheless, the current federal government made modifications to the law and made it necessary for carrying out companies to register themselves on the Ministry of Corporate Affairs pc registry, which will assist in getting the information of implementing companies, he said.Responding to an inquiry on a mechanism to find out about funds spent on different heads in disadvantaged areas, the minister said that maximum funds are spent on education, health care and rural development throughout the country.To another query asked by TDP leader Kanakamedala Ravindra Kumar that if the federal government prepares to set up a different system to keep an eye on and inspect the CSR activities, the minister said a regulation has been released to business investing more than 10 crore CSR funds to send an impact evaluation report.To another question on strategies to support NGOs facing fund crisis in the wake of COVID-19, the minister stated the CSR costs is based upon the company’s board-driven policy.”The business’s board decides where and how much to spend,” he included.

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