Para 7.4.7 — MSO (Audit)
Original Rule Text
7.4.7 The procedures that the Parliament and Legislatures follow in dealing with these Accounts and Reports are regulated by the rules framed or adapted under Article 118 and Article 208 of the Constitution in respect of the Union and States respectively and Section 33 of the Government of Union Territories Act, 1963 in respect of the Union Territories. These rules provide for examination of the Accounts and Reports by a Committee of the respective Legislature known as the Public Accounts Committee. At the Centre, there is a separate Parliamentary Committee on Public Undertakings to consider the Audit Reports (Commercial) relating to the Central public sector corporations and companies. Some of the State Legislatures have also established Public Undertakings Committees to consider the Audit Reports (Commercial) relating to the State public undertakings or the audit observations included in the chapters relating to corporations and companies contained in the Audit Reports of those States in respect of which separate Audit Reports (Commercial) are not prepared.
What This Means
Parliament and State Legislatures deal with CAG's Audit Reports through procedures laid down under the Constitution (Articles 118 and 208) and the Government of Union Territories Act, 1963. The reports are examined by the Public Accounts Committee (PAC) of the relevant Legislature. At the Centre, a separate Committee on Public Undertakings handles Commercial Audit Reports on central public sector entities. Some states have also set up their own Public Undertakings Committees for state-level commercial audits.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Procedures for dealing with Audit Reports are governed by Article 118 (Union), Article 208 (States), and Section 33 of the Government of Union Territories Act, 1963
- 2The Public Accounts Committee (PAC) examines the Accounts and Reports at each level
- 3A separate Committee on Public Undertakings exists at the Centre for Commercial Reports
- 4Some State Legislatures have also established Public Undertakings Committees
- 5These committees are constituted under the rules of procedure of the respective Legislature
Practical Example
After the CAG's Audit Report on Union Government accounts is tabled in Parliament, the Public Accounts Committee takes it up for detailed examination. When a Commercial Report on a central PSU like SAIL is tabled, it goes to the Committee on Public Undertakings instead. In Karnataka, the State Legislature has its own Public Undertakings Committee that examines the commercial audit observations on state corporations like KSRTC.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Which constitutional provisions govern how Legislatures deal with Audit Reports?▼
What is the difference between the PAC and the Committee on Public Undertakings?▼
Do all states have a separate Public Undertakings Committee?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.