Introduction:
The Public Accounts Committee (PAC) is a significant parliamentary committee in India that plays a crucial role in overseeing the financial aspects of the government. Formed under the provisions of the Constitution of India, the PAC scrutinizes the utilization of public funds, ensures transparency, and holds the government accountable for its financial actions. This note provides an overview of the Public Accounts Committee, its composition, functions, and significance.
Composition:
The Public Accounts Committee is one of the parliamentary committees in India. Its composition includes the following:
- Chairperson: The chairperson of the PAC is a member of the opposition party as per the convention. This ensures an independent and unbiased scrutiny of the government’s financial matters.
- Members: The PAC consists of members from both the Lok Sabha (House of the People) and the Rajya Sabha (Council of States), in proportion to the strength of various parties in the Parliament.
- Tenure: The members of the PAC are appointed for a term of one year. However, the chairperson continues to hold the position throughout the year.
Functions and Responsibilities:
The main functions and responsibilities of the Public Accounts Committee include:
- Examination of Audit Reports: The PAC examines the audit reports prepared by the Comptroller and Auditor General (CAG) of India. These reports assess the financial transactions and management of public funds by the government.
- Scrutiny of Public Expenditure: The committee scrutinizes the expenditure incurred by various government departments and agencies to ensure that it aligns with the approved budgets and is used for the intended purposes.
- Accountability and Transparency: The PAC holds the government accountable for its financial actions and decisions. It ensures transparency, efficiency, and effectiveness in the use of public funds.
- Value for Money: The committee assesses whether the government’s expenditures are yielding value for money and whether public resources are utilized optimally.
- Recommendations: Based on its examination, the PAC makes recommendations to the government for improvements in financial management, efficiency, and accountability. The government is required to respond to these recommendations.
Significance:
The Public Accounts Committee serves several important purposes in the Indian parliamentary system:
- Oversight: The PAC is a key instrument of parliamentary oversight over the executive branch of the government, ensuring that public funds are utilized responsibly.
- Accountability: By scrutinizing government expenditures and holding the government accountable for its financial decisions, the PAC promotes transparency and prevents misuse of public funds.
- Checks and Balances: The PAC functions as a check on the government’s financial actions, contributing to a system of checks and balances in the democratic governance structure.
- Recommendations for Improvement: The committee’s recommendations help in identifying weaknesses and inefficiencies in financial management and provide valuable insights for policy improvement.
- Public Trust: The PAC’s work enhances public trust in the government’s financial operations, as citizens can be assured that public funds are being used responsibly and effectively.
Conclusion:
The Public Accounts Committee is an essential institution in India’s parliamentary system, ensuring the prudent use of public funds, transparency, and accountability in the government’s financial actions. Through its examination of audit reports and recommendations for improvements, the PAC contributes to strengthening democratic governance and enhancing the efficiency of financial management.