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Source– This post on Public Accounts Committee (PAC) is based on the article “Public Accounts Committee to hold ‘performance review’ of regulatory bodies” published in “The Hindu” on 7th September 2024.
Why in the News?
Senior Congress leader and Lok Sabha member K.C. Venugopal, who heads the Public Accounts Committee (PAC), will conduct a performance review of regulatory bodies established by Acts of Parliament, including the Securities and Exchange Board of India (SEBI).
About the Public Accounts Committee (PAC)
| Aspects | Description |
| About | The Public Accounts Committee (PAC) is one of the three Financial Parliamentary Committees, along with the Estimates Committee and the Committee on Public Undertakings. |
| Historical background | 1. The PAC is the oldest among all parliamentary committees. 2. It was established in 1921 under the Government of India Act, 1919 (Montague-Chelmsford Reforms). 3. W M Hailey was the first Chairperson of the PAC, while Bhupendra Nath Mitra was the first Indian to hold this position. |
| Composition | The PAC consists of 22 members of parliament—15 from the Lok Sabha and 7 from the Rajya Sabha. |
| Membership | Eligibility: Ministers are not eligible to be elected to the committee. Term: Members are appointed for a one-year term, and the PAC is reconstituted annually under Rule 308 of the Rules of Procedure and Conduct of Business in the Lok Sabha. |
| Chairperson of PAC | The Chairperson of the PAC is appointed by the Speaker of the Lok Sabha. Since 1967, the Chairperson has traditionally been selected from the opposition. |
| Role of the Comptroller and Auditor General (CAG) | The PAC works closely with the Comptroller and Auditor General (CAG), who assists the committee in examining government accounts and audit reports. The CAG is often referred to as a “friend, philosopher, and guide” to the PAC. |
| Functions of the Public Accounts Committee | 1. Examination of Audit Reports: The PAC’s primary role is to scrutinize the audit reports submitted by the Comptroller and Auditor General (CAG) after they are presented in Parliament. 2. Watchdog of Public Expenditure: PAC acts as a guardian of the public purse, closely examining audit reports related to the appropriation account and finance account. 3. Scrutiny of Appropriation Accounts: The Committee scrutinizes the appropriation account to check legality of Funds, sanction by Authority, Procedural Compliance. 4. Ensuring Government Accountability: The PAC holds the government accountable by reviewing budgetary appropriations, accounts, and the CAG’s reports on the execution of projects and programs across various ministries. 5. Reviewing Expenditure for Efficiency: The PAC examines public expenditure not only for technical or legal irregularities but also for economy and prudence, propriety. |
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