| Role of the committee is limited by the following It is not concerned with the questions of policy in a broader sense. It conducts a post-mortem examination of accounts (showing the expenditure already incurred). It cannot intervene in the matters of day-to-day administration. Its recommendations are advisory and not binding on the ministries. It is not vested with the power of disallowance of expenditures by the departments. It is not an executive body and hence, cannot issue an order. Only the Parliament can take a final decision on its findings. |
- The Securities and Exchange Board of India (SEBI) Chairperson did not attend a meeting with Parliament’s Public Accounts Committee (PAC) sparked debate over the PAC’s authority to summon her.
- Some members viewed skipping the meeting could constitute “contempt” of the legislative body.
- Issues surrounding SEBI are sub judice in the context of recent allegations by Hindenburg Research.
- The Public Accounts Committee (PAC) ensures administrative accountability in India’s parliamentary democracy.
- Establishment and Composition: Formed in 1921, PAC has up to 22 members (15 from Lok Sabha and 7 from Rajya Sabha), with an Opposition member typically serving as Chair.
- Functions:
- PAC examines government accounts, including appropriations, expenditures, and re-appropriations, to ensure the lawful use of public funds.
- It reviews records of government corporations and projects with guidance from the Comptroller and Auditor General (CAG).
- PAC scrutinizes spending for waste and irregularities, calls for accountability in cases of negligence, and facilitates parliamentary regularization of excesses under Article 115.
- CAG audits, regarded as PAC’s “friend, philosopher, and guide,” provide essential insights for PAC’s in-depth reviews.
- The government must report back within six months on actions taken based on the PAC’s recommendations, which the PAC reviews and compiles in an Action Taken Report.
- Since 1982, PAC has mandated Ministries to submit corrective actions for all audit paragraphs, tracking compliance through the Audit Para Monitoring System (APMS) to minimize pending issues.
Dig Deeper: Read about other Financial Committees.
