Analysis of Public Accounts Committee (PAC)

Syllabus: Polity: Parliamentary Committee

Source: TH

Context: The newly constituted Public Accounts Committee (PAC) has taken a proactive step by selecting 161 subjects for review, including five key areas like banking reforms and energy transition, mainly based on CAG reports.

Headed by Congress MP K.C. Venugopal, the PAC aims to scrutinize the government’s expenditure beyond formalities, focusing on its effectiveness and integrity. This oversight is crucial given the allegations of crony capitalism and lack of accountability in recent years.

About Public Accounts Committee (PAC):

Aspect | Details

Role | Audits government revenue and expenditure, examining C&AG audit reports after being presented in Parliament.

Assistance | Comptroller and Auditor General (C&AG) assists in investigations.

Function | Ensures government spending is within the scope of Parliament’s grants.

Genesis | Established in 1921, became a Parliamentary Committee under the Speaker’s control in 1950.

Membership | 22 members (15 from Lok Sabha, 7 from Rajya Sabha), elected annually.

Chairperson | Appointed from Lok Sabha, traditionally from the Opposition since 1967-68.

Exclusions | Ministers are not members; if a member is appointed a Minister, they must vacate their seat.

Key Functions | 1. Scrutinizes government accounts and C&AG reports. 2. Reviews legality, authority, and prudence of expenditure.

Examination Focus | Ensures appropriations are spent for the approved purpose, follow authority, and maintain economy and efficiency.

PAC and Financial Accountability – Roles and Concerns:

• Examination of CAG Reports:

• The PAC examines annual audit reports by the Comptroller and Auditor General (CAG), which are presented to Parliament by the President.

• Scrutiny of Expenses:

• Reviews public expenditure not only for technical irregularities but also for economy, prudence, and propriety. Highlights waste, loss, corruption, and inefficiency Limitations: Conducts post-mortem scrutiny and has no role in controlling expenses beforehand.

• Reviews public expenditure not only for technical irregularities but also for economy, prudence, and propriety.

• Highlights waste, loss, corruption, and inefficiency

• Limitations: Conducts post-mortem scrutiny and has no role in controlling expenses beforehand.

• Streamlining Government Activities:

• Works with Public Estimates and Public Undertakings Committees to oversee government expenditures. Promotes efficiency and financial propriety. Limitations: Lacks power for day-to-day intervention and its recommendations are advisory, not binding.

• Works with Public Estimates and Public Undertakings Committees to oversee government expenditures.

• Promotes efficiency and financial propriety.

• Limitations: Lacks power for day-to-day intervention and its recommendations are advisory, not binding.

• Need-based Policy-making:

• Offers constructive suggestions for optimal use of resources and passive improvements in government policies. Limitations: Has no direct role in policymaking, and it cannot issue orders—Parliament decides on its findings.

• Offers constructive suggestions for optimal use of resources and passive improvements in government policies.

• Limitations: Has no direct role in policymaking, and it cannot issue orders—Parliament decides on its findings.

Conclusion

Moving forward, the PAC should reinvent itself to more effectively handle the complexity of scrutinizing the accounts and audit of expenditures through capacity building, accessing the inputs of experts and information exchanges.

Insta Links:

• The Role of Parliamentary Committees

Mains Link:

Why do you think the committees are considered to be useful for parliamentary work? Discuss, in this context, the role of the Estimates Committee. (UPSC 2018)

Prelims lInk:

• With reference to the Parliament of India, which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub-rules, by-laws, etc., conferred by the Constitution or delegated by the Parliament are being properly exercised by the Executive within the scope of such delegation? (UPSC 2018)

(a) Committee on Government Assurances (b) Committee on Subordinate Legislation (c) Rules Committee (d) Business Advisory Committee

Ans: (b)