Context
Recently, the Lok Sabha Speaker inaugurated a conference of Public Accounts Committee (PAC) chairpersons from 25 states to discuss technology-driven report disposal, CAG audit procedures and strengthening parliamentary oversight.
About PAC
- Establishment: The PAC is India’s oldest parliamentary committee, introduced in 1921 following the Government of India Act, 1919 (Montford Reforms).
- Current Mandate: It is constituted annually under Rule 308 of the Rules of Procedure and Conduct of Business in the Lok Sabha.
- Composition: The committee consists of 22 members (15 elected from the Lok Sabha and 7 from the Rajya Sabha).
- Term and Restrictions: Members serve a strict one-year term. Ministers are expressly barred from being elected to the committee to prevent conflicts of interest.
- Leadership: The Chairperson is appointed by the Lok Sabha Speaker. By a convention established in 1967-68, the Chairperson is always a Member of the Opposition.
Importance of Public Accounts Committee (PAC)
- Financial Accountability: Examines government expenditure and ensures public funds are used appropriately.
- Executive Oversight: Scrutinises government spending and promotes accountability of the executive to Parliament.
- CAG Audit Review: Examines CAG reports on government expenditure and financial irregularities.
- Financial Discipline: Identifies wasteful expenditure, financial mismanagement and procedural lapses.
- Democratic Accountability: Strengthens parliamentary control over public finances.
- Transparency: Promotes responsible, efficient and transparent governance.
Limitations
- It cannot question the wisdom of policy decisions approved by Parliament.
- Its recommendations are advisory in nature and not legally binding on the government.
| Important CTC from This Article: Committee on Public Undertakings |
Q. With respect to the Public Accounts Committee (PAC), consider the following statements:
I. A Minister can be elected as a member of the committee if specially nominated by the Speaker of the Lok Sabha.
II. The committee examines the audit reports of the Comptroller and Auditor General (CAG), excluding those related to Public Sector Undertakings.
Which of the statements given above is/are correct?
(a) I only
(b) II only
(c) Both I and II
(d) Neither I nor II
Answer: (b)
Explanation:
• Statement I is incorrect: According to parliamentary rules, a Minister is strictly barred from being elected as a member of the PAC to maintain independent scrutiny over the executive.
• Statement II is correct: The PAC examines CAG reports concerning government expenditure and finance accounts, but reports relating strictly to Public Undertakings are examined separately by the Committee on Public Undertakings (CoPU).