PUBLIC ACCOUNT COMMITTEE: POLITY

PUBLIC ACCOUNT COMMITTEE: POLITY

NEWS: Constitute Delhi Assembly’s Public Accounts Committee to examine CAG report on AAP’s excise policy: Congress

 

Public Accounts Committee (PAC) – Role, Composition, and Functions

Definition and Purpose of the Public Accounts Committee (PAC)

  • The Public Accounts Committee (PAC) is a parliamentary committee responsible for auditing the revenue and expenditure of the Government of India.
  • It plays a crucial role in ensuring financial accountability and parliamentary oversight over government spending.
  • The PAC works in conjunction with the Comptroller and Auditor General (CAG) to review government finances, expenditure, and policy implementation.
  • The committee acts as a watchdog, ensuring that government funds are spent in accordance with the budget approved by Parliament.

 

Composition of the Public Accounts Committee

  1. Total Members
    • The PAC consists of up to 22 members:
      • 15 members from the Lok Sabha (Lower House).
      • 7 members from the Rajya Sabha (Upper House).
  1. Election Process
    • Members are elected annually by their respective houses of Parliament.
    • The election is conducted using proportional representation through a single transferable vote.
    • This system ensures that members are selected proportionally to party strength in Parliament.
  1. Chairperson Appointment
    • The Speaker of the Lok Sabha appoints the Chairperson of the PAC.
    • Traditionally, the Chairperson is a member of the opposition party, ensuring neutrality and unbiased oversight.
  1. Term of Office
    • The members of the PAC serve a one-year term, after which new members are elected.
  1. Restriction on Ministers
    • No minister (Cabinet, State, or Deputy) can be a member of the PAC.
    • This restriction ensures that the committee remains independent of the executive branch of government.

 

Functions and Responsibilities of the Public Accounts Committee

  1. Examination of CAG Reports
    • The PAC examines audit reports submitted by the Comptroller and Auditor General (CAG) after they are presented in Parliament.
    • It scrutinizes whether government spending aligns with budget allocations and financial regulations.
  1. Ensuring Fiscal Accountability
    • The committee verifies whether government expenditure follows the budgetary approvals of Parliament.
    • It ensures that funds allocated to government departments and programs are used efficiently and transparently.
  1. Detection of Financial Irregularities
    • The PAC investigates instances of wasteful expenditure, unauthorized spending, and financial mismanagement.
    • It ensures that public funds are used for their intended purposes and not misappropriated.
  1. Review of Policy Implementation
    • The committee evaluates how effectively government schemes and policies are implemented based on financial reports.
    • It suggests corrective measures and policy changes if inefficiencies or irregularities are found.
  1. No Direct Power to Enforce Action
    • The PAC does not have executive powers to take direct action against government departments or officials.
    • However, it submits recommendations to Parliament, and the government is expected to act upon them.
  1. Maintaining Parliamentary Oversight
    • The PAC plays a key role in upholding democratic principles by ensuring the executive remains accountable to Parliament.
    • It prevents arbitrary government spending and ensures adherence to fiscal discipline.

 

Conclusion

  • The Public Accounts Committee (PAC) is a crucial institution in India’s parliamentary system, ensuring transparency, financial discipline, and accountability in government spending.
  • By examining CAG reports, identifying financial mismanagement, and recommending corrective actions, the PAC helps uphold fiscal responsibility and good governance.
  • Though the committee does not have direct enforcement powers, its reports influence policy changes and accountability measures within government departments.

 

Source: https://www.thehindu.com/news/cities/Delhi/constitute-delhi-assemblys-public-accounts-committee-to-examine-cag-report-on-aaps-excise-policy-congress/article69267183.ece