Congressional Estimation Committee Meeting
The Public Accounts Committee (PAC) in India is a key parliamentary body responsible for maintaining financial accountability and ensuring that public funds are used efficiently and effectively. Established in 1950, the PAC scrutinises the audit reports of the Comptroller and Auditor General (CAG) after they have been laid before Parliament, focusing on government spending that complies with Parliament's grants and legal norms [1][5].
Role and Responsibilities
The PAC's primary role is to examine the Appropriation Accounts and Finance Accounts of various government ministries, such as Railways, Defence, and Posts and Telegraphs. It also reviews reports from the Comptroller and Auditor General of India, ensuring that public funds are spent within the approved demands [1][5].
By acting as a parliamentary watchdog on government financial administration and expenditure, the PAC is instrumental in checking for excess expenditure, financial irregularities, and assessing the economy, efficiency, and effectiveness of public expenditure [1][5].
Composition and Functioning
The PAC consists of a maximum of 22 members, primarily from the Lok Sabha (15 members elected annually), and includes members from the Rajya Sabha. The chairman of the committee is invariably from the ruling party [5][1].
The CAG is considered the "friend, philosopher, and guide" to the PAC, assisting in deliberations, but is not a member [5][1].
Notable Achievements
The PAC has made significant contributions to financial accountability, particularly in highlighting major financial irregularities and losses. For instance, the PAC's scrutiny led to the identification of losses worth ₹1.76 lakh crore in the 2G spectrum case, resulting in major policy reforms [3].
Identified Weaknesses
Despite its achievements, the PAC's effectiveness can be limited by delays in government departments submitting their replies to PAC reports, difficulty in enforcing recommendations due to the lack of executive powers, members' expertise and capacity constraints, over-reliance on CAG audit reports, limited proactive audits by PAC itself, and potential political influences [1][5].
Proposed Solutions for Improvement
To enhance the PAC's impact on governance, several solutions have been proposed. These include strengthening the follow-up mechanism for enforcing PAC recommendations, enhancing the technical expertise of members, increasing transparency, empowering PAC with greater administrative support, fostering bipartisan cooperation, and promoting timely submission and replies from government departments [1][5].
In recent years, the PAC has conducted a review of underutilization of funds under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in 2021-22.
In conclusion, the PAC plays a crucial role in maintaining financial accountability and ensuring that public funds are spent efficiently. While it has made significant contributions, improvements in enforcement, expertise, and transparency could further strengthen its impact on governance in India.
The Public Accounts Committee (PAC) not only scrutinizes the Appropriation Accounts and Finance Accounts of various government ministries, such as Railways, Defense, and Posts and Telegraphs, but also reviews reports from the Comptroller and Auditor General of India, focusing on examining business practices related to public funds within approved demands [1][5]. The PAC's examination of these accounts and reports helps in evaluating the finance and economic efficiency of government expenditure.
