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Public Accounts Committee (PAC)
Context:
Recently, the Delhi Congress demanded the formation of the PAC in the Delhi Assembly to examine the CAG report on AAP’s excise policy (2021-22), alleging a loss of ₹2,000 crore.
About Public Accounts Committee
- The Public Accounts Committee (PAC) is a crucial parliamentary committee that examines government expenditures to ensure accountability, transparency, and efficiency in financial management.
- Established in 1921 under the Government of India Act, 1919.
- Initially chaired by a ruling party member, but since 1967, it has been conventionally chaired by a leader from the Opposition.
- Comprises 22 members (15 from Lok Sabha and 7 from Rajya Sabha) elected by proportional representation.
- Ministers cannot be a part of the PAC.
Composition and Functions of PAC
- Composition
- Members are elected annually from both Houses of Parliament.
- The Speaker appoints the chairman (from the Opposition as per convention).
- Assisted by the Comptroller and Auditor General (CAG) in examining reports.
- Functions
- Examination of CAG reports on government expenditure, including:
- Appropriation accounts: Comparing actual vs. sanctioned expenditure.
- Finance accounts: Analysing receipts and disbursements.
- Ensuring legal validity and conformity of expenditures.
- Examining accounts of public sector undertakings and autonomous bodies.Reviewing policy implementation failures and financial irregularities.
- Identifying waste, inefficiency, and corruption in government spending.
- Examination of CAG reports on government expenditure, including:
Challenges Faced by PAC
- Limited powers: It cannot disallow expenditures or enforce its recommendations.
- Post-mortem nature: Examines expenditure after it has already occurred.
- No policy-making role: It cannot influence broad government policies.
- Lack of executive authority: Its findings need Parliament’s approval.
- Declining effectiveness:
- Fewer bills being referred to parliamentary committees.Reduced Parliamentary working hours impacting scrutiny.
PAC’s Role in Strengthening Democracy
- Ensures the executive remains accountable to the legislature.
- Helps prevent misappropriation of public funds.
- Enhances public confidence in governance.
- Aids in effective policy-making by highlighting systemic flaws.
Recent PAC Interventions
- Examined CAG report on COVID-19 relief measures highlighting concerns about fund utilisation and procurement inefficiencies.
- The 2019-20 PAC report revealed:
- 78.81% of recommendations were accepted by the government.
- 13.56% were reiterated due to unsatisfactory responses.
- 6.78% were pending interim replies.
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The Source’s Authority and Ownership of the Article is Claimed By THE STUDY IAS BY MANIKANT SINGH
