Formation of the Public Accounts Committee (PAC)

The Public Accounts Committee (PAC) is one of the most important committees in the Indian Parliament, primarily responsible for examining the accounts of the government. It was first formed in 1921 and operates under Article 151 of the Indian Constitution. The PAC ensures that public money is being spent according to the law, for the purposes it was allocated, and in a transparent manner.

1. Composition

• The PAC is composed of 22 members from the Lok Sabha (the lower house of Parliament), with 15 members being from the ruling party and the remaining 7 from the opposition. The Rajya Sabha (the upper house) is not represented in the PAC.
• The members are elected annually by the Lok Sabha from among its members. The Chairman of the PAC is usually a senior member of the opposition.

Functions of the Public Accounts Committee (PAC)

1. Examination of Government Accounts

• The PAC examines the audit reports of the Comptroller and Auditor General (CAG) of India. This includes looking into government spending, ensuring that public funds are used effectively and according to the approved budget.

2. Investigating Wasteful Expenditure

• It is the PAC’s responsibility to scrutinize any wasteful or inefficient use of public funds. For example, if the government spends more than what was allocated in a budget or misuses the funds, the PAC will investigate.

3. Recommendations

• The PAC submits its reports to the Parliament, which include recommendations on improving financial management. While the recommendations are not legally binding, they are often seriously considered by the government.

4. Follow-up on Audit Reports

• The PAC follows up on audit reports provided by the CAG, addressing any irregularities in government financial transactions and ensuring corrective actions are taken.

Importance of the Public Accounts Committee (PAC)

1. Ensuring Accountability

• The PAC holds the government accountable for how it spends public money. By examining the spending and providing recommendations, the PAC ensures that public funds are used for the intended purposes.

2. Promoting Transparency

• Through its investigations, the PAC promotes transparency in government financial management. Its reports help the public and Parliament know how government funds are being utilized.

3. Strengthening Democracy

• The PAC plays a vital role in strengthening the democratic process by ensuring that elected representatives are accountable for how taxpayer money is spent. This keeps the government in check and protects the interests of the public.

Conclusion

The Public Accounts Committee is a critical parliamentary body that ensures transparency, accountability, and efficiency in the use of public funds. By scrutinizing government expenditures and examining audit reports, the PAC helps maintain financial discipline in the functioning of the government. Its role in safeguarding taxpayer money and recommending corrective measures highlights its importance in strengthening democracy and governance in India.