Public Accounts Committee (PAC)

Recently, the reconstituted Public Accounts Committee (PAC) convened its first meeting and selected several subjects for detailed examination, reaffirming its crucial role in ensuring financial accountability and parliamentary oversight over government expenditure.

About the Public Accounts Committee (PAC)

The Public Accounts Committee (PAC) is the oldest financial committee of the Indian Parliament, having been established in 1921 under the provisions of the Government of India Act, 1919 (Montagu–Chelmsford Reforms). After Independence, it was retained as an important instrument of legislative control over public finances.

The Committee is reconstituted every year, ensuring continuous parliamentary scrutiny of government expenditure and financial administration.

Its primary purpose is to examine whether public money granted by Parliament has been spent efficiently, economically, and strictly in accordance with parliamentary approval and legal provisions.

Composition and Membership

The PAC consists of 22 members, of whom 15 are elected from the Lok Sabha and 7 from the Rajya Sabha. The members are elected annually according to the principle of proportional representation by means of the single transferable vote, ensuring representation of different political parties.

The term of office of the members is one year.

Importantly, Ministers are not eligible to become members of the Committee, thereby maintaining its independence and impartiality in scrutinising executive actions.

Chairperson of the PAC

The Chairperson of the Public Accounts Committee is appointed by the Speaker of the Lok Sabha from among its members.

Although the Constitution or parliamentary rules do not mandate it, a well-established convention has evolved whereby the Chairperson is chosen from the Opposition party. This practice began in 1967–68, when the Speaker appointed an Opposition member as the Chairperson for the first time, strengthening the Committee's credibility and ensuring non-partisan financial oversight.

Functions of the Public Accounts Committee

The PAC plays a vital role in maintaining financial accountability and transparency in governance.

It examines the Audit Reports of the Comptroller and Auditor General (CAG) relating to the accounts of the Union Government. Through this examination, the Committee ensures that money sanctioned by Parliament has been spent only for the purposes for which it was allocated.

The Committee investigates instances of financial irregularities, wasteful expenditure, losses, inefficiency, and deviations from approved policies or procedures. It seeks explanations from government departments and recommends corrective measures to improve public financial management.

However, the PAC does not question the policy objectives of the government; rather, it focuses on whether the implementation of those policies has been financially prudent, lawful, and efficient.

Relationship with the Comptroller and Auditor General (CAG)

The CAG acts as the friend, philosopher, and guide of the PAC. The Committee relies heavily on CAG audit reports as the basis for its investigations and deliberations.

While the CAG conducts independent audits of government accounts, the PAC functions as the parliamentary mechanism that holds the executive accountable by examining those audit findings and seeking remedial action.

Thus, the PAC and the CAG together constitute an essential pillar of India's system of financial accountability and legislative oversight.

Significance of the Public Accounts Committee

The Public Accounts Committee is often regarded as the "watchdog of public expenditure" because it ensures that taxpayer money is used responsibly and in accordance with parliamentary intent.

By scrutinising government spending, exposing irregularities, and recommending improvements in financial administration, the Committee strengthens transparency, accountability, and good governance. It also reinforces the principle that the executive remains accountable to the legislature in matters of public finance, which is fundamental to a parliamentary democracy.