Do Foreign Contributions To India Impact National Security Fcra Report 2007-2008

Share to Facebook Share to Twitter Share to Google Plus Share to Google Plus Share to Google Plus Add to Favourites

First published www.rediff.com. To see slide show http://business.rediff.com/slide-show/2010/apr/13/slide-show-1-do-foreign-contributions-to-india-impact-security.htm

To read PDF file of FCRA Annual Report click here
To read article in Table Format see below.

I have been reading the FCRA Annual Report for a few years now. The sheer magnitude of contributions from abroad amazes me!

The Foreign Contribution Regulation Act was passed in 1976. It seeks to regulate receipt of funds by NGOs. It is managed by the Ministry of Home Affairs. Any organization that wants to receive contributions from abroad has to apply and get approval from the Home Ministry. It has to annually submit audited receipts and payments account, Balance Sheet etc to the Home Ministry. The Ministry of Home Affairs collates the data and releases an Annual Report that gives the names of top donor countries, largest donors, top recipients and expense heads of funds utilized amongst other information. It is available on the Home Ministry web site http://www.mha.nic.in/fcra.htm

As on 31.3.2008 there were 34,803 registered associations under FCRA. These organizations could be religious, social, educational, cultural and educational organizations.

Why do we need to analyze inflows under FCRA?
1. Because of the sheer magnitude of inflows.
2. Reported inflows into India were $ 2 billion in 2007-08 and app $ 2.5 billion in 2006-07.
3. Actual inflows were much higher.
4. Why are these countries pouring in billions of dollars into India?
5. Why this special love for India?
6. Is there an impact on National Security?

Data given in the FCRA report is presented under the following heads.
1. Trends of Foreign Contributions 1993-94 to 2007-08.
2. Top 4 Remitting Countries 2002-2007-08.
3. Top 15 Donor Countries 2007-08 and 2006-07.
4. Top 15 recipient State wise 2007-08 and 2006-07.
5. Top Recipient Districts 2007-08 and 2002-03.
6. Top Recipient Associations 2007-08 and 2006-07.

Food for Thought is the last section what India and Indians need to think about.
Trends of Foreign Contributions

Year Registered Associations (as on 31st March of F.Y.)

Associations who gave details of Contributions recd Amt of Foreign Contributions recd (Rs crs)
1993-94 15,039 NA 1865
1994-95 15,723 NA 1892
1995-96 16,740 NA 2168
1996-97 17,723 NA 2571
1997-98 18,489 12,198 (66%) 2864
1998-99 19,834 13,775 (69%) 3402
1999-00 21,244 13,996 (66%) 3924
2000-01 22,924 14,598 (64%) 4535
2001-02 24,563 15,598 (64%) 4872
2002-03 26,404 16,590 (63%) 5047
2003-04 28,351 17,145 (61%) 5105
2004-05 30,321 18,540 (61%) 6257
2005-06 32,144 18,570 (58%) 7878
2006-07 33,937 19,011 (56%) 11,336
2007-08 34,803 18,796 (54%) 9,663
Total 1993-94 to 2007-08 73,379

NA is not available.

1. There has been a steady increase in the number of registered associations. Taking 15,039 associations in 1993-94 as a base year, their number grew by 41% in 2000-01, 101% in 2005-06 and 131% in 2007-08. Note that UPA 1 came to power in June 2004 and Tsunami hit South India in December 2004. Also reported inflows jumped in 2006-07 jumped 121% when compared to Rs 5,105 crs in 2003-04.
2. The way it works is that registered associations submit audited accounts to the Home Ministry. These numbers are then collated and presented in the form of an Annual Report. If an NGO does not submit its annual accounts then the Home Ministry does not include the amounts received by it under Reported Inflows.
3. What this means that Rs 9,664 crs shown as inflows excludes money received by 46% of the associations.
4. Total funds received in 2007-8 at Rs 9,663 crs is up 512% compared to 1993-94 but down 14% compared to 2006-07.
5. Reported contributions were used for Establishment expenses Rs 3,422 crs, Rural development Rs 1,781 crs, Relief/rehabilitation of natural calamities Rs 1,689 crs, welfare activities for children Rs 1,334 crs and construction/maintenance of schools/colleges Rs 1,206 crs.