The Public Accounts Committee (PAC) plays a pivotal role in upholding the principles of transparency, fiscal responsibility, and good governance by scrutinizing the government’s financial management and holding it accountable to the public. Comprising members of parliament, the PAC serves as a critical oversight mechanism, ensuring that taxpayers’ money is spent efficiently and by established rules and regulations. By examining government expenditures, auditing reports, and conducting inquiries, the PAC identifies instances of financial irregularities and mismanagement, subsequently making recommendations to rectify these issues. Through its comprehensive evaluations, the PAC not only acts as a watchdog on behalf of the citizens but also facilitates a robust system of checks and balances, reinforcing the government’s obligation to operate ethically and responsibly. In essence, the Public Accounts Committee serves as a cornerstone in the democratic structure, fostering accountability and reinforcing public trust in the government’s financial affairs.
Tag: Governance; Functioning of Parliament.
Decoding the Question:
- In the Introduction, briefly write about the Public Account Committee.
- In Body, try to write the role of the Public Accounts Committee in establishing accountability.
- In Conclusion, write the overall significance of the Public Accounts Committee.
Answer:
The Public Accounts Committee is considered the most important financial Committee of Parliament in the financial accountability process. It comprises 22 members of parliament (15 members from Lok Sabha and 7 from Rajya Sabha) .Its term of office is one year. It is constituted every year by the Parliament for the audit of revenue and expenditure of the government of India to ensure accountability.
Role of the Public Accounts Committee(PAC) in Establishing Accountability:
- Examining the budgetary appropriations and accounts of the government and Reports of the Comptroller and Auditor General (under article 151) on the execution of the projects and programs by the various ministries.
- It examines audit reports on appropriation accounts and finance accounts of the Union government and acts as the watchdog of the public purse.
- Examining the demand for excess grants before they are presented to the Parliament for regularization.
- The functions of the Committee extend “beyond the formality of expenditure to its wisdom, faithfulness and economy”. It examines cases involving losses, nugatory expenditure, and financial irregularities
- The Committee also examines cases involving under-assessments, tax evasion, non-levy of duties, misclassifications, etc., and identifies loopholes in the taxation laws and procedures and makes recommendations to check leakage of revenue.
- In scrutinizing the appropriation accounts and the audit report of CAG on it, the Committee has to satisfy itself that the money that has been disbursed was legally available for the applied service or purpose, the expenditure conforms to the authority that governs it and every reappropriation has been made by the related rules.
Challenges/limitations:
- Even if it brings out the irregularities in the public expenditure there are no mechanisms to enforce the corrective measures.
- It examines the expenditure which has already been done by the government.
- Its recommendations are only advisory and are not binding on the ministry of the day.
- PAC has no mandate to examine the policy in a broader sense.
The Public Accounts Committee enjoys a place of pride in our Committee system. To strengthen its functioning the recommendations of the All-India Conference of Chairpersons of PACs of Parliament should be taken into consideration. The PAC should be consulted on the appointment of the CAG, services of experts should be available on technical matters and should have powers to examine Public-Private Partnership projects. Administrative accountability to the legislature through these Committees has been the hallmark of our political system.
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