Public Accounts Committee

The Public Accounts Committee (PAC) is a standing parliamentary committee tasked with scrutinising the expenditure of the Union Government against the authorisations granted by Parliament, thereby acting as a principal instrument of fiscal oversight. Unique among legislative committees, the PAC operates on the audited reports of the Comptroller and Auditor General (CAG) and possesses the authority to summon officials, demand documents, and compel explanations, making it a cornerstone of accountability in India’s democratic system.

Origins and Historical Background

The concept of a Public Accounts Committee originated in the United Kingdom in 1861, where it was created to examine the Treasury’s accounts and to curb misuse of public funds. The British colonial administration introduced a similar body in India under the Government of India Act 1919, and the first Indian PAC convened on 1 April 1921, reflecting the Montagu‑Chelmsford reforms that expanded legislative scrutiny. After independence, the committee was retained by the Constitution of India through Article 118, which empowers each House of Parliament to make rules for its own procedure, thereby embedding the PAC within the parliamentary framework.

Composition and Appointment

The Indian PAC consists of twenty‑two members: fifteen are drawn from the Lok Sabha (the lower house) and seven from the Rajya Sabha (the upper house). Members are appointed annually by the Speaker of the Lok Sabha and the Chairman of the Rajya Sabha respectively, in accordance with Rule 128 of the Lok Sabha Rules of Procedure and Rule 124 of the Rajya Sabha Rules. By convention, the chairmanship of the Lok Sabha‑based PAC is held by the Speaker, while the day‑to‑day leadership is delegated to a senior opposition MP, ensuring bipartisan oversight. The committee’s term aligns with the parliamentary session, typically lasting one year, after which a fresh roster is announced in the Gazette of India.

Working Mechanism

Each year the PAC receives the CAG’s audit reports on the accounts of ministries, departments, and autonomous bodies, beginning with the “Report on the Accounts of the Union Government” for the preceding financial year. The committee schedules hearings, summons the concerned ministry officials, and examines the audit findings point‑by‑point; for example, in the 2022‑23 cycle it held 112 hearings covering 48 ministries. Findings are recorded in a formal report that includes observations, recommendations, and, where necessary, directives for corrective action. These reports are tabled in both Houses of Parliament, and the Standing Committee on Public Accounts follows up on implementation, often publishing its own progress notes.

Key Provisions and Powers

The PAC’s authority derives from the Rules of Procedure of each House and from the CAG Act 1971, particularly Section 13, which mandates the CAG to submit audited statements to Parliament. Under Rule 128, the committee may “call for any document, record or evidence” and “require the attendance of any person” deemed necessary for its inquiry. It also enjoys the power to issue “notice of motion” to the concerned ministry, compelling a response within a stipulated period, typically fifteen days. While the PAC cannot enforce punitive measures, its recommendations carry political weight; ministries that ignore them risk parliamentary censure and media scrutiny, as seen in the 2010 audit of the Ministry of Road Transport and Highways that led to the resignation of a senior bureaucrat.

Significance and Contemporary Role

The PAC’s role in exposing financial irregularities has been pivotal in high‑profile cases such as the 2010 2G spectrum allocation controversy and the 2021 Kerala financial crisis, where its reports prompted parliamentary debates and corrective legislation. By bridging the audit function of the CAG with legislative scrutiny, the committee reinforces the principle of “no money without Parliament.” Internationally, India’s PAC mirrors the UK model but differs from the United States’ Committee on Oversight and Reform, which lacks a dedicated audit‑report focus. In the current fiscal environment, the PAC continues to adapt, incorporating digital document management and remote hearings—a shift accelerated by the COVID‑19 pandemic—while maintaining its core mandate of ensuring that public expenditure aligns with the authorisations granted by the people’s representatives.