Public Accounts Committee (PAC) in India

Public Accounts Committee (PAC) in India

What is the Public Accounts Committee (PAC)? 
The Public Accounts Committee (PAC) is the oldest  parliamentary committee in India, established in 1921 based on the Montagu-Chelmsford Reforms. Its primary role is to audit the annual spending of the government, ensuring that public funds are used efficiently and for their intended purposes. It acts as a key mechanism for parliamentary oversight of government expenditures.

How is the PAC constituted and what has been its historical evolution? 
Originally chaired by the Finance Minister until 1950, the PAC underwent a significant transformation post-independence. It became a parliamentary committee under the control of the Speaker of the Lok Sabha, with its chairperson traditionally being a member from the opposition. This practice, which began in 1967, supports the committee’s role in providing unbiased scrutiny of the government's financial operations. The committee usually consists of 22 members—15 from the Lok Sabha and 7 from the Rajya Sabha—selected by proportional representation using a single transferable vote.

What are the key functions and powers of the PAC? 
The PAC reviews the reports of the Comptroller and Auditor General (CAG) on the appropriation of funds by the government, examining:

Legality of expenditures.
Financial management and wastage.
Policy implementation effectiveness. The committee ensures that expenditures do not exceed the amounts sanctioned by Parliament and that they adhere to the stipulated financial regulations and policies.

Can the PAC summon ministers or government officials?
 While the PAC has considerable powers to summon government officials for examinations, it does not have the authority to summon ministers. This provision helps maintain a focus on administrative accountability without direct political confrontation, adhering to the norms and procedures governed by the Speaker of the Lok Sabha.

What significant changes have occurred in the PAC over time? 
Since its establishment, the PAC has seen several reforms:

In 1950, it transitioned to being controlled by the parliamentary Speaker with a non-executive chair from the opposition.
In 1954, the inclusion of Rajya Sabha members enhanced its bicameral nature.
The 1967 reform institutionalized the practice of an opposition chairperson to foster non-partisan scrutiny of government finances.

What impact does the PAC have on government policy and public administration? 
The PAC plays a vital role in influencing government financial policy and public administration by identifying inefficiencies, suggesting improvements, and ensuring that government operations are conducted economically. The findings and recommendations of the PAC often lead to reforms in financial governance, enhance transparency, and ensure public accountability.

What happens if the PAC finds financial discrepancies or irregularities?
 When discrepancies or irregularities are found, the PAC recommends corrective actions and reforms. The government is mandated to take action on these recommendations and report back to the committee on the measures implemented. This loop ensures ongoing accountability and corrective actions in government financial practices.

How often does the PAC meet, and what is its output?
 The PAC meets frequently, typically when Parliament is in session, to review new audits and ongoing issues. Annually, the committee examines a variety of topics and produces multiple reports that are presented to Parliament, influencing discussions on fiscal responsibility and transparency.

What was the significance of the centennial celebration of the PAC? 
Celebrating its centennial in 2021, the PAC marked 100 years of essential oversight and accountability in government finances in India. This milestone emphasized the committee’s enduring role in shaping fiscal governance and safeguarding public resources against mismanagement and corruption.

Newly Constituted Public Accounts Committee (PAC)

What is the role of the newly constituted Public Accounts Committee (PAC)? 
The newly constituted PAC is responsible for scrutinizing government expenditures to ensure they are legal, economical, and efficiently used. The committee examines accounts associated with the Consolidated Fund of India, particularly focusing on audits reported by the Comptroller and Auditor General of India (CAG).

What subjects has the PAC chosen for deliberation?
 The PAC, under the chairmanship of K.C. Venugopal, has selected 161 subjects for review during its current term, mostly based on reports from the CAG. Notably, the committee has also chosen to examine five subjects suo motu. These include reforms in the banking and insurance sectors, the implementation of centrally sponsored welfare schemes, policy measures in the energy transition, performance of regulatory bodies, and the management of fees and tariffs on public utilities.

What powers does the PAC have in its deliberations?
 The PAC has extensive powers to examine the accounts and expenditures of the government beyond just legal compliance. Its mandate allows it to assess the "wisdom, faithfulness, and economy" of government spending, thereby enabling a comprehensive review of financial management and policy implementation across various sectors.

How does the PAC influence public policy and governance?
 By examining government spending and policy effectiveness through a critical lens, the PAC plays a crucial role in enhancing transparency and accountability. Its findings and recommendations can lead to significant reforms in public sector management, influencing policy decisions and ensuring that taxpayer money is used effectively and judiciously.

These comprehensive FAQs highlight the PAC’s critical role within India’s parliamentary framework, underscoring its importance in maintaining fiscal discipline and accountability in government spending.

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