• What are the objectives of Viksit Bharat Charitable Trust, Why required, Who can contribute & how, How will it be managed, Checks and Balances. It is a vehicle to involve all in nation building.

Thanks to China and Pakistan there is a surge in national sentiment now. Indians worldwide might want to directly contribute to the nation’s defence preparedness and ISRO missions but are not sure if there is a legal entity to which they contribute. An entity where they know what they are contributing to, works transparently and is tax efficient.

I first realized the need for such an entity whilst visiting the Army Goodwill School in Ladakh, way back in 2016. Whilst the school did very well with its limited resources, I realized it could do even better with India Inc. support.

Guess things happen when the time is right. This is time esp. post Operation Sindoor. Here is a proposed framework.

GOI must create a Charitable Trust that allows Indians/India Inc. to contribute to nation building for e.g. purchase of weapons and science/technology driven projects for e.g. through Indian Space Research Organization (ISRO). It can be named VIKSIT BHARAT 2047 Charitable Trust. It is love for Bharat and not tax breaks that must stimulate contribution.

How can Indians Contribute?

Every project would have a budgeted amount to be collected by the Trust. If target met, contributions shall be accepted towards other projects.

Contributions could be made by any Indian Citizen, Persons of Indian Origin (PIO) from a bank account located in India and a company incorporated in India. All contributions have to be in rupees and must specify which project they are meant for. No cash contributions shall be accepted.

India Inc. contributions could be considered as CSR (Corporate Social Responsibility) spends. Defence and Technology companies cannot contribute to missions where they could be potential vendors. Donations made by Individuals and PIO would be entitled to tax-break under Section 80(G) of the Income-tax Act 1961.

Certain restrictions on total contribution by each entity would need to be laid down to avoid misuse.

The mandatory transfer of unspent CSR amounts to Consolidated Fund of India symbolises negative energy and funds get lost in the maze. Conversely, involve India Inc. in co-achieving national goals by creating an enabling framework.

How will contributions be used?

Monies so collected could be used for national missions like one buying specific weapon systems namely S400-Rafale Jets, two develop indigenous Supercomputers, three ISRO missions like Chandrayaan 4 or NASA-ISRO SAR (NISAR), a Low Earth Orbit (LEO) observatory being jointly developed by NASA and ISRO. To read more Here and four fund schools in Border areas of Ladakh, Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh.

Once the above template stabilises, the trust’s role could evolve continuously.  

The trust could support existing schools run by the Indian Army and like-minded NGOs. This trust would allow the Indian Army to receive direct financial support for these strategic and compassionate objectives whilst reducing pressures on the fiscal deficit.

If contributions are used for political purposes or to score brownie points vs. political opponents this scheme is bound to fail.

How will the above work?

Create a separate website for the trust and seek limited public contributions for specific projects. Key is to get citizens involved in this aspect of nation building and win their confidence that their contributions would be well used.

Trust and transparency are key. Each project would have brief project details and a framework for association.

The trust would provide updates, at a predetermined frequency, on the status of each project.

The technology backbone of the website, its running, citizen interface, issue of 80G receipts and updates on projects should be outsourced, a bit like how the passport office is managed.

Funds collected by the trust should be used only for the purposes for which the money was raised. If people see results, success or failure, money shall pour in. Conversely, if the government used these funds elsewhere, the idea will become a non-performing asset.

Who will manage the Charitable Trust?

The trust would have a Board of Trustees consisting of the Cabinet Secretary, Expenditure Secretary, a Lt General from the Indian Army, Head of ISRO, the Deputy CAG (Deputy Comptroller and Auditor General of India-Defence and Local Governance) and a representative from a business body say CII or FICCI.

Day to day operations would be headed by a Secretary General who should preferably be from the Armed Forces or ISRO with technical and administrative experience. Retired Judges and IAS officers shall not be considered for this post. The Secretary General would report to the Cabinet Secretary on a day to day basis.

Employees of this trust shall not be considered government employees for the purposes of salary and pension.  

Their role would be to evaluate projects that are put out for public contributions, ensure that the money received is spent for which it was received, communicate with stakeholders and manage the trust affairs.

The culture should be the best of the private and public sectors. Its office should not be part of any other government department.

Pay-outs from trust, being contributions, would invariably be to government departments, public sector units or NGOs. Adequate controls need to be built in so money is used purposely. The Income-Tax/GST Acts might need to be amended to provide a specific section for the Viksit Bharat Trust.

The Institute of Chartered Accountants of India would do a monthly internal audit for free. The Trust would be subject to a CAG audit and its report placed in Parliament.

Indians must realize that India has a very difficult neighbourhood that pose huge security challenges and nation building is an even bigger challenge. This decade could be India’s decade if we collectively do it right. India Inc. must realise that its prosperity is intertwined with the progress made by India and Bharat. 

Author is a Senior Chartered Accountant