Public Accounts Committee

India is a parliamentary democracy and Committee on Public Accounts is the oldest Financial Parliamentary Committee. The remaining two are the Committee on Public Undertakings and the Estimates Committee. Parliamentary Committees draw their authority from the two Articles of the Indian Constitution i.e. Article 105 and Article 118. Public Accounts Committee is a Financial Committee that examines the annual audit reports submitted by the Comptroller Auditor General and reports its findings in the Parliament. It acts as a watchdog for public expenditure.

A. Evolution of the Committee

The first Public Accounts Committee was set up in 1921 at the time of Montagu Chelmsford’s reforms. The Chairman of the Committee at that time was the Finance member of the Executive Council. After the independence of India in August 1947, the Finance Minister acted as the Chairman of the Committee. After the adoption of the Constitution of India, the Committee underwent a radical change as it became a Parliamentary Committee working under the control of the Speaker. According to Rule 309 (i) of the Rules of Procedure and Conduct of Business in Lok Sabha, the Finance Minister stopped being a member of the Committee.

B. Composition of the Committee

According to Rule 308, the Rules of Procedure and Conduct of Business in Lok Sabha, the Public Accounts Committee is now constituted every year. The Committee can consist of not more than 22 members including 15 members which are elected every year by the Lok Sabha from among its members and not more than 7 members of the Rajya Sabha which are elected by the Rajya Sabha. The election of the members takes place based on the principle of proportional representation by the means of a single transferable vote. The tenure of the members of the Committee does not exceed one year.  

Minister is not appointed as a member of the Committee and in case, a member is appointed as a Minister, he ceases to be the member of the Committee from the date of such appointment.

C. Functions of the Public Accounts Committee

1. The main purpose behind the establishment of the Committee is to check whether the money spent by the Government is under the “Scope of demand” or not.
2. Scrutinize the Appropriation Account: By verifying whether the funds have been allocated by the competent authority if the funds are legally or illegally available and the rules laid down in the procedure are appropriately followed or not, the Committee helps in scrutinizing the appropriation account.
3. Establishment of the accountability of the government: By examining the budgets and accounts of the Government and the reports of the Comptroller and Auditor General, it establishes the accountability of the Government.
4. Discussion on financial discipline and principles: One of the functions of the Committee is also to examine the questions in detail that deal with financial discipline and principles.
5. Cases involving losses, nugatory, expenditure, and financial irregularities: All these types of cases come under the scope and examination of the Public Accounts Committee. These functions further expand the scope of the Committee to a great extent.
6. Invite public opinion -The Committee is envisaged with the power of inviting the opinion of the public as and when required. It also has the power to invite a non-official witness if needed in case of examination.
7. Appointment of working groups, sub-committees, and the Action Taken sub-committee: The working groups, sub-committees, and the Action Taken sub-committees can be appointed by the Public Accounts Committee for fulfilling its functions.
8. Examine policies and make suggestions– The Committee’s important role is to examine policies and make recommendations to the Government on various matters of importance. However, after all this, the government is supposed to take action based on those recommendations made by the Committee. An Action Taken Report is also prepared by the Committee on the actions taken up by the Government based on the recommendations made by it.
9. Provides forum– Important deliberative issues need to be discussed with the experts of various domains and with Government officials. Committee provides a forum for such significant discussions so that they may take place in a fruitful manner.
10. Promote Consensus-building– The meetings of the Committee take place behind closed doors. As a result, it’s easier to arrive at a consensus as no one is watching the deliberations taking place behind the doors.

D. Limitations in the Functioning of the Committee:

Public Accounts Committee is invested with a lot of responsibilities that it fulfills on time still, there are a few hindrances in the smooth functioning of the Committee.

1. The Committee’s recommendations are only advisory in nature and are not binding since it is not an executive body.  
2. Its functions start only after the implementation of the policies or incurrence of the expenses. It cannot prevent the occurrence of an expense before the scheduled time. Its function is monitory and curative not preventive in nature.
3. It does not play any role in direct administration.
4. It can only find the loopholes. The ultimate and final decision-making authority is the Parliament itself.
5. The Public Accounts Committee cannot examine a policy in a broader sense.

Note: Public Accounts Committee is considered to be one of the most significant Financial committees of the Parliament. It has completed hundred years of existence. Despite its limitations, the report published by the Committee plays a prominent role in influencing public opinion. Providing more powers to it will enhance its work efficiency, therefore, steps should be taken to increase its powers. Apart from it, information exchange can also accelerate the committee’s performance. As a result, access to the internet should be encouraged for Public Accounts Committee.