A century of Public Accounts Committee (PAC)

An insight into 100 years of the Public Accounts Committee (PAC) and its importance in democracy

A century of Public Accounts Committee (PAC)

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• The story: In 2021, the Public Accounts Committee (PAC) has completed 100 years. The PAC is one of the three Financial Parliamentary committees (the other two being the Estimates Committee and the Committee on Public Undertakings).
• What are these committees: All Parliamentary committees draw their authority from Article 105 (on privileges of Parliament members) and Article 118 (on Parliament’s authority to make rules for regulating its procedure and conduct of business).
• Detailed inputs: The Public Accounts Committee (PAC) was introduced in 1921 after its first mention in the Government of India Act, 1919 also called Montford Reforms. The PAC is now constituted annually under Rule 308 of the Rules of Procedure and Conduct of Business in Lok Sabha.

1. Its Chairman is appointed by the Speaker of Lok Sabha. The Committee, not being an executive body, can only make decisions that are advisory by nature.
2. It comprises 22 members (15 members elected by the Lok Sabha Speaker, and 7 members elected by the Rajya Sabha Chairman) with a term of one year only.
3. The PAC checks if the money given to the Ministries is spent by within the “scope of demand” or not. So, the PAC restricts any Minister from being elected as a member of it.

• Works: The PAC examines the accounts showing the appropriation of the sums granted by the House to meet the expenditure, the annual Finance Accounts of the government and, other accounts laid before the House as the Committee may think fit except those relating to such Public Undertakings as are allotted to the Committee on Public Undertakings.

1. Apart from the Reports of Comptroller and Auditor General of India (CAG) on Appropriation Accounts of the Government, it examines the various Audit Reports of the CAG on revenue receipts, expenditure by various Ministries/Departments of Government and accounts of autonomous bodies.
2. It looks upon savings arising from incorrect estimating or other defects in procedure no more leniently than it does upon excesses.

• Parliamentary Committees and Indian democracy: Te Parliament deliberates on matters that are complex, and therefore needs deep expertise to understand such matters better. These Committees help by providing a forum where members can engage with domain experts and government officials during the course of their study.

1. Committees provide a forum for building consensus across political parties. The proceedings of the House during sessions are televised, and MPs are likely to stick to their party positions on most matters.
2. Committees have closed door meetings, which allows them to freely question and discuss issues and arrive at a consensus.
3. Committees also examine policy issues in their respective ministries, and make suggestions to the government. The government has to report back on whether these recommendations have been accepted or not. The Committees then table an Action Taken Report, which shows the status of the government’s action on each recommendation.

• Weakening of system: A parliamentary democracy works on the doctrine of fusion of powers between parliament and the executive, but the Parliament is supposed to maintain oversight of the government and keep its power in check. If a government starts circumventing the Parliamentary committees in the passing of significant legislation, there is a risk of weakening democracy. This is what has happened post 2014, in Indian Parliament.

1. In the Indian system, it is not mandatory for bills to be sent to committees. It’s left to the discretion of the Chair — the Speaker in the Lok Sabha and Chairperson in the Rajya Sabha. That is where the risk lies.
2. By giving discretionary power to the Chair, the system has been rendered weak in a Lok Sabha where the ruling party has a brute majority. It is quite sad, that a longstanding tradition is withering away, leading to weakly drafted laws making it.

• Summary: The Parliament has a central role in Indian democracy as the representative body that checks the work of the government. In order to fulfil its constitutional mandate, it is imperative that Parliament functions effectively. Micro scrutiny of the bills is an essential requirement of quality legislation. Circumventing the parliamentary committees while passing legislations undermines the very spirit of democracy.
• EXAM QUESTIONS: (1) Explain the role and significance of the PAC in Indian Parliament. Where did it originate? (2) What is going wrong with the parliamentary committee culture in India? Explain. (3) If you were the PM of India, what five steps would you take to strengthen the Parliament of India, and the democratic functioning of the government? List and explain.

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