Introduction
The Public Accounts Committee, commonly known as the PAC, is one of the most important financial committees of the Indian Parliament. It ensures that public money is used properly and that the government remains accountable for every rupee spent. While Parliament passes the budget every year, the PAC checks whether the government has actually followed the rules laid down in the budget. This makes the committee a key part of India’s oversight mechanism and a powerful tool for maintaining transparency in public finance.
Origin and Constitutional Basis
The PAC draws its authority from parliamentary rules and conventions. It does not originate directly from the Constitution, yet its importance has grown with every passing decade. The Government of India Act, 1919 first introduced the committee in colonial India, and after Independence, the parliamentary system continued the tradition. Over time, its scope expanded to match the increasing complexity of government expenditure and audit practices.
Although the PAC is not a constitutional body, it operates under Article 151 of the Constitution. This article requires the Comptroller and Auditor General (CAG) to submit audit reports to the President, who then places them before Parliament. The PAC examines these reports in detail. Through this process, the committee becomes the bridge between the CAG’s findings and Parliament’s financial control.
Composition and Membership
The PAC consists of members from both Houses of Parliament. The Lok Sabha elects the majority of the members, while the Rajya Sabha elects the rest. The Speaker of the Lok Sabha appoints the Chairperson. By tradition, the chairperson usually belongs to the opposition. This convention strengthens the committee’s ability to monitor the government without political bias.
Members serve for one year, although they may be re-elected. The annual reconstitution allows fresh participation while maintaining continuity. This system ensures that the committee remains dynamic and responsive to the financial concerns of the nation.
Functions of the Public Accounts Committee
The PAC performs a range of responsibilities that revolve around the examination of government expenditure. Its most important task is the scrutiny of audit reports submitted by the CAG. These reports point out irregularities, wasteful spending, financial mismanagement and violations of rules. The PAC studies each observation carefully. It then calls upon officials of the ministries concerned to explain these issues.
The committee examines whether money granted by Parliament was spent for the purpose for which it was approved. This examination is not limited to technical accounting. The PAC looks into whether expenditure was necessary, justified and efficient. It reviews losses, delays, excess spending and cases where procedures were not followed. Through these inquiries, it ensures that public money benefits citizens and not administrative inefficiencies.
The PAC also monitors how ministries respond to earlier recommendations. When the committee issues directions, ministries must submit Action Taken Reports. These reports tell the committee whether the government implemented the suggested reforms. This follow-up system strengthens accountability and prevents recurring financial lapses.
Relationship with the Comptroller and Auditor General
The PAC works closely with the CAG. In fact, the PAC cannot function without the CAG’s audit reports. The CAG acts as the independent auditor of the government and highlights issues that require further investigation. The PAC then studies these issues. This relationship creates a strong financial oversight mechanism. The CAG identifies problems and the PAC demands explanations from the executive. Together, they create a system of financial checks and balances that protects public funds.
Working Procedure of the Committee
The PAC follows a systematic method. After Parliament receives audit reports, the committee selects the subjects it wishes to examine. It calls officials from the ministries concerned and conducts detailed hearings. These hearings often take place over several months because financial matters require careful scrutiny.
After completing its inquiry, the committee prepares a detailed report. This report summarises findings and recommends corrective steps. The committee then submits the report to Parliament. Once presented, the report becomes a public document. It attracts public attention and often leads to administrative reforms.
The PAC’s work continues even after the report is submitted. Ministries must send Action Taken Statements explaining how they implemented the recommendations. The committee reviews these statements to ensure that reforms are properly carried out.
Importance of the Public Accounts Committee
The PAC plays an essential role in strengthening Indian democracy. It ensures that Parliament does not simply pass the budget but also monitors how the government uses it. Without the PAC, financial accountability would weaken and misuse of public funds would go unchecked. The committee brings transparency into government spending and helps curb corruption and inefficiency.
The PAC also improves the quality of governance. When ministries know that their decisions will be examined in detail, they act more responsibly. The committee’s recommendations often lead to changes in rules, procedures and administrative structures. These reforms make government functioning more efficient and responsive.
The presence of opposition members in leadership adds credibility to the committee’s work. It reassures citizens that financial scrutiny is not influenced by political loyalty. This independence strengthens public trust.
Landmark Interventions by the PAC
Over the years, the PAC has examined several major issues related to public finance. It has played an important role in exposing financial irregularities, improving audit practices and influencing policy reforms. Its observations have shaped debates on public expenditure, defence procurement, railway finances and welfare schemes. While not all recommendations are accepted, many have brought long-lasting improvements to government operations.
Challenges Faced by the Committee
Despite its influence, the PAC faces certain difficulties. Government departments often delay submission of information. Some ministries provide incomplete responses to audit observations. These delays slow down the committee’s work. The growing complexity of public expenditure also demands higher levels of expertise, but the committee does not always have access to specialist research support.
Another challenge comes from the non-binding nature of PAC recommendations. While many ministries take them seriously, some suggestions remain unimplemented. The effectiveness of the committee depends largely on the willingness of the executive to cooperate.
Relevance in Contemporary Governance
India’s economy continues to expand, and government expenditure covers a wide range of sectors. As spending grows, the need for strong financial oversight becomes even more important. The PAC remains one of the few institutions that can examine government spending in a methodical and independent manner. Its role becomes crucial in preventing financial scandals, improving transparency and ensuring responsible use of public money.
The committee also contributes to public debate. Its findings highlight structural weaknesses in governance. These discussions encourage administrative reforms and promote ethical political behaviour.
Conclusion
The Public Accounts Committee stands as a vital guardian of financial accountability in India. It ensures that the executive remains answerable to Parliament and that public funds serve the nation effectively. Through its detailed examination of audit reports, rigorous questioning of officials and persistent follow-up, the PAC strengthens democratic governance. Its work reflects the principle that true parliamentary control goes beyond passing the budget. It extends into continuous oversight, scrutiny and responsibility. As India continues to grow and govern larger budgets, the importance of the PAC will only increase.
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