Examine the role and importance of the Public Accounts Committee (PAC) within the framework of the Indian parliamentary system. (10M, 150 words) [GS-2: Polity]

Introduction:

• The Public Accounts Committee (PAC) was established in 1921 following the Montague-Chelmsford Reforms to enhance parliamentary oversight of public finances.
• Currently, the PAC is constituted annually under Rule 308 of the Lok Sabha’s Rules of Procedure and Conduct of Business. It consists of up to 22 members—15 elected by the Lok Sabha through proportional representation and single transferable vote, and no more than 7 members from the Rajya Sabha.

Body:
Role and Significance of the Public Accounts Committee (PAC):

Examining Government Expenditure:

• The PAC scrutinizes the accounts showing the appropriation of sums granted by Parliament for government expenditure, along with annual finance accounts and other accounts presented before the House.
• It ensures accountability in the government’s financial management by checking the expenditure against the parliamentary grant.

Ensuring Compliance:

The PAC verifies that:

• Funds expended are lawfully available for the intended service or purpose.
• Spending complies with the governing authority.
• Any reappropriation of funds follows the required rules.

Oversight of Autonomous Bodies:

• The PAC reviews the accounts of autonomous and semi-autonomous bodies to ensure transparency in their financial operations.

Reviewing CAG Reports:

• The PAC examines reports by the Comptroller and Auditor General (CAG), ensuring that government finances are properly audited.
• It also checks whether the CAG’s audits directed by the President include examination of receipts, store, and stock accounts.

Example in Indian Context:

• The PAC played a crucial role in scrutinizing government spending in high-profile cases such as the 2G spectrum allocation and the Commonwealth Games scams. Its reports have been instrumental in highlighting financial irregularities and enforcing accountability.

Conclusion:

• The PAC plays a vital role in maintaining financial discipline by ensuring that government expenditures stay within the scope of parliamentary approval.
• Although the members’ terms are limited to one year, the PAC serves as a significant check on the executive’s use of public funds, with its chairperson appointed by the Speaker from the Lok Sabha members. Its non-partisan functioning ensures that the government remains answerable to Parliament for its financial conduct.