Public Account Committee
Introduction
The Public Accounts Committee (PAC) was established as a committee of Parliamentarians. Its goal is to examine the finances of the Indian government. It is one of India's first parliamentary committees. It was originally codified as the Montford Reforms in the Government of India Act, 1919. This group is also referred to as the government expenditure watchdog.
Public Accounts Committee
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Functions of The Public Accounts Committee
The Public Accounts Committee's duties include keeping a close eye on government spending and performance and exposing inefficiencies, wasted expenditures, and sloppiness in the execution of laws passed by parliament.
To offer suggestions on how to administer things more effectively so that policies can be implemented quickly, cheaply, and effectively.
The committee's responsibility is to annually review the Comptroller and Auditor General of India (CAG) audit reports.
The president's report presented to the legislature includes:
• Audit report on Appropriation account
• Audit report on finance account
• Audit report on public undertakings
To lessen waste and excess, the committee reviews public spending from both an economic and legal perspective, in addition to a formal and legal one.
To review any other accounts presented to the Lok Sabha as well as the appropriation and finance accounts of the union government.
To review the financial statements of state corporations, business ventures, and manufacturing initiatives, as well as the CAG reports on them.
To review the financial statements and CAG report for autonomous and semi-autonomous bodies.
To investigate any funds used for services throughout a fiscal year that exceed the sum authorized by the lok sabha for such purposes.
Limitations - Public Accounts Committee
• In the broadest sense, policy concerns are not addressed.
• It does a post-mortem accounting analysis (noting past expenditure).
• It lacks the power to get involved in daily operations.
• The recommendations it makes are merely advisory and do not bind the ministries.
• It lacks the power to restrict departmental spending.
• It cannot give an order because it is not an executive body. On the basis of its conclusions, only Parliament has the power to make final judgments.
Public Accounts Committee – Historical Background
• The Committee on Public Accounts was established in 1921 as a result of the Montague-Chelmsford Reforms or Government of India Act of 1919.
• The Committee became a Parliamentary Committee on January 26, 1950, when the Constitution came into effect. It is now answerable to the Speaker and is presided over by an unofficial Chairman who is chosen by the Speaker from among the Lok Sabha Members who were elected to the Committee.
• The committee's chairman belonged to the ruling party from 1966 to 1967.
• A tradition that dates back to 1967 states that the head of the committee is always chosen from the opposition.
Current Controversies - Public Accounts Committee
2G Scam (2010–2011)
• Then, PAC Chairman Murli Manohar Joshi attempted to push through a contentious report on the 2G issue by threatening to summon Manmohan Singh, which infuriated Congress members.
Issue with demonetization (2016–17)
• Then-Lok Sabha Speaker Sumitra Mahajan voiced her displeasure with PAC Chairman K V Thomas's comments that the panel might invite Prime Minister Narendra Modi to address the demonetization issue if it wasn't satisfied with RBI Governor Urjit Patel's and top financial officials' responses.
• Unanimous consent is required for the PAC to approve any report, and this murkiness has periodically surfaced in the discussion surrounding the Chairman's duties.
• Each PAC operates in a certain political environment and has challenges specific to the legislative body it represents, hence it is thought that it should concentrate on policy administration rather than the policy itself in order to prevent political unrest.
Way Ahead
• The All India Conference of Chairpersons of Parliamentary PACs and State/UT Legislatures proposed that the PAC be given the authority to look into Public-Private Partnership projects and that it be consulted on the choice of the CAG.
• The report recommended, among other things, that technology concerns be handled with the help of professionals.
• The primary goal of PAC should be policy administration rather than policy itself in order to avoid political disputes.
Conclusion
One of the main responsibilities of the PAC, known as "the mother of all parliamentary committees," is to hold the executive branch accountable for how it spends tax dollars. The committee has completely met the expectation that it should become a strong force in the management of public expenditures, according to the former CAG Ashok Chanda, who commented on the committee's performance.