PUBLIC ACCOUNTS COMMITTEE

The PAC website says the Committee on Public Accounts was first set up in 1921 in the wake of the Montague-Chelmsford Reforms. W M Hailey was its first president, and Bhupendra Nath Mitra its first Indian president.

The last president before Independence was Liaquat Ali Khan. The Finance Member of the Executive Council was the Chairman of the Committee. The Finance Department provided secretariat assistance to the Committee up to 1949During the days of the Interim Government, the then Finance Minister was the Chairman of the Committee.

After Independence, the Finance Minister of India became Chairman. With the Constitution coming into force the Committee became a Parliamentary Committee functioning under the Speaker with a non-official Chairman appointed by the Speaker from among the Members of Lok Sabha elected to the Committee.

But even then, a member from the ruling party continued to be Chairman The Congress had the post until 1967, when Minoo Masani of Swatantra Party became Chairman. Since then the PAC has always been headed by a member from the Opposition.

The Committee on Public Accounts is constituted by Parliament each year for examination of accounts showing the appropriation of sums granted by Parliament for expenditure.

It examines the statement of accounts showing the income and expenditure of State Corporations, trading and manufacturing schemes, concerns and projects together with the balance sheets and statements of profit and loss accounts which the President may have required to be prepared. It examine the statement of accounts showing the income and expenditure of autonomous and semi-autonomous bodies.

It considers the report of the C&AG in cases where the President may have required him to conduct an audit of any receipts and to examine the accounts of stores and stocks. The functions of the Committee extend, however, beyond the formality of expenditure to its wisdom, faithfulness and economy.

The Committee thus examines cases involving losses, nugatory expenditure and financial irregularities. Another important function of the Committee is the discussion on points of financial discipline and principle.

While scrutinizing the Reports of the C&AG on Revenues Receipts, the Committee examines various aspects of Government’s tax administration. The Committee, examines cases involving under-assessments, tax-evasion, non-levy of duties, mis-classifications etc., identifies the loopholes in the taxation laws and procedures

Though the Public Accounts Committee (PAC) is quite often referred to as a post-mortem committee, it has a significant role, The committee’s job of scrutinising accounts is a continuous process and it enjoys the prerogative of looking at the present as well as the future.

The committee has kept the executive accountable to Parliament, thereby lending an additional dimension to the nation’s fiscal policies and programmes PAC has been reduced to being a toothless watchdog, the authors aver that the fault lies at the door of the government.

Holding the Executive to account for its use of public money is the key roles of Parliament’s Public Accounts Committee (PAC). It is the oldest of all House panels, with its colonial origins , and its job is to keep a vigil on the spending and performance of the government, to bring to light inefficiencies, wasteful expenditure, and indiscretion in the implementation of policies and programmes approved by Parliament, and to make recommendations to streamline the administration for efficient, speedy and economical implementation of policy.

Consensus and controversy have been the contradictory faces of the PAC’s functioning over the past few decades. In several instances , PAC chairman’s asked to appear Prime Minister before the panel for the probe But Prime Minister never appeared before the PAC in history . The PAC cannot finalise any report without consensus, the lack of consensus has frequently seen controversy over the role of the Chairman.

Other Department Related Standing Committees can adopt reports with dissent notes by some members, but the PAC must adopt all reports by consensus. Since PAC operates in a specific political context and faces issues unique to the legislature it serves, its focus should be on the administration of policy rather than policy itself, to avoid political wrangling.

The PAC’s power to scrutinise expenditure provides for Parliamentary oversight over Executive decisions. It acts as a check on arbitrary negligence of the executives.

PAC lacks in expertise in its examinations. Officers can sometimes neglect the PAC summon . The Institute of Public Auditors of India (IPAI) sought suo motu powers of investigation for the PAC. The PAC had recently pitched for deepening of the CAG accountability to Parliament.

The report of the All India Conference of Chairpersons of PACs of Parliament and State/UT Legislatures suggested that the PAC should be consulted on the appointment of the CAG, and that it should have powers to examine Public-Private Partnership projects.

Some of the questions

1. Is public accounts committee a constitutional body?

2. What is the role of public accounts committee?

3. How many members are in the public accounts committee? Who is head of Public Accounts Committee?

4. What is the strength of the public accounts committee?

5. Can CAG be a member of parliamentary committee?

6. Which of the following authorities does the public accounts committee submit its report in India?

7. Which of the following is concerned with the regularity and economy of expenditure of government?