PUBLIC ACCOUNTS COMMITTEE - POLITY

News: PAC charges BJP govt. with failure to handle COVID-19 and recommends probe

 

What's in the news?

       The Public Accounts Committee of the State legislature has accused the previous BJP dispensation of failure to handle COVID-19 pandemic and recommended a comprehensive probe by an independent institution into issues such as purchase of medicines and equipment during the pandemic.

 

Key takeaways:

       In its report that was tabled in the Karnataka Assembly, the 21-member PAC led by Congress member Ramalinga Reddy has observed that there was mismanagement in handling of COVID-19, including purchase of medicine, equipment and Rapid Antigen Test kits and distribution of ventilators got from PM CARES funds.

 

Public Accounts Committee:

       The Public Accounts Committee was set up first in 1921 under the provisions of the Government of India Act of 1919 and has since been in existence.

 

Constitution:

       At present, it consists of 22 members (15 from the Lok Sabha and 7 from the Rajya Sabha).

       The members are elected by the Parliament every year from amongst its members according to the principle of proportional representation by means of the single transferable vote. Thus, all parties get due representation in it.

       The term of office of the members is one year.

       A minister cannot be elected as a member of the committee.

       The chairman of the committee is appointed from amongst its members by the Speaker. Until 1966-67, the chairman of the committee belonged to the ruling party.

       However, since 1967 a convention has developed whereby the chairman of the committee is selected invariably from the Opposition.

 

Function of the Committee:

       To examine the annual audit reports of the Comptroller and Auditor General of India (CAG), which are laid before the Parliament by the President.

       The CAG submits three audit reports to the President, namely, audit report on appropriation accounts, audit report on finance accounts and audit report on public undertakings.

       The committee examines public expenditure not only from legal and formal point of view to discover technical irregularities but also from the point of view of economy, prudence, wisdom and propriety to bring out the cases of waste, loss, corruption, extravagance, inefficiency and nugatory expenses.

 

Limitations:

The effectiveness of the role of the committee is limited by the following:

       It is not concerned with the questions of policy in a broader sense.

       It conducts a post-mortem examination of accounts (showing the expenditure already incurred).

       It cannot intervene in the matters of day-to-day administration.

       Its recommendations are advisory and not binding on the ministries.

       It is not vested with the power of disallowance of expenditures by the departments.

       It is not an executive body and hence, cannot issue an order. Only the Parliament can take a final decision on its findings.