PUBLIC ACCOUNTS COMMITTEE

PUBLIC ACCOUNTS COMMITTEE

Subject : Polity

Context : Amid the hectic campaigning in West Bengal, Congress leader AdhirRanjan Chowdhury made a dash to Delhi on Friday to chair a meeting of the Public Accounts Committee.

Concept :

• The committee was first mentioned in the Montagu and Chelmsford Reforms or the Government of India Act 1919 but it came into existence only in 1921.
• It examines the annual audit reports and is responsible for mainly taking care of public expenditure to check for any kind of fraud, mal-functioning, waste, or extravagance in the funds utilized in the government projects that are being undertaken.

Members of the Public Accounts Committee (PAC)

• The committee comprises 22 members. 15 from the Lok Sabha (or the Lower House) and 7 from the Rajya Sabha (or the Upper House).
• He or She cannot be a minister in the Cabinet.
• The members are elected from the members of the Parliament by conducting an election by Proportional Representation by means of the Single Transferable Voting System (PRSTV).
• Every member elected by the Parliament holds office for a year after which fresh elections take place and a new set of committee members are elected.

Chairperson of the Public Accounts Committee

• The Speaker of the Lok Sabha elects the Chairperson of the Public Accounts Committee from amongst its members.
• Though initially, the Chairperson used to be appointed from the ruling party it was later decided to appoint the chairperson from the opposition party invariably.

Functions of the Public Accounts Committee

• Examines the financial accounts and the appropriation accounts of the Central Government which is made by the Lok Sabha.
• Scrutinizes audit reports made by the Comptroller and Auditor General (CAG) of India to make sure it is justified and no fraud or mistakes have been made. It also ensures that the money used is legally available and also conforms to the cause it’s needed for, to avoid extravagance and wastage.
• Examines accounts of State Corporations, Trading Concerns, and Manufacturing Products.
• Examines the accounts of Autonomous and Semi-Autonomous Bodies.
• It keeps check of any money spent on any service availed or utilized in the year and makes a thorough report of it.
• The CAG is responsible for assisting the PAC throughout the year through all its activities.