71^st BPSC Mains

Approach: Introduce PAC as a parliamentary financial watchdog. In the body, explain scrutiny of CAG reports, questioning expenditure, ensuring accountability. Conclude by highlighting its role in transparent governance.

Answer: The Public Accounts Committee (PAC) is one of India’s oldest and most significant Parliamentary Committees, tasked with ensuring legislative oversight over the executive’s financial operations. It comprises 22 members (15 from Lok Sabha and 7 from Rajya Sabha) and is traditionally chaired by a member of the Opposition, promoting non-partisan scrutiny. Its central purpose is to uphold the government’s financial accountability to Parliament.

Mechanisms of Accountability

• The PAC ensures executive accountability primarily through examination of the Comptroller and Auditor General (CAG) reports. Its key roles include:
  • Scrutiny of Public Expenditure
    • PAC examines CAG audit reports on Appropriation Accounts and Finance Accounts, acting as a “watchdog” over government spending.

Upholding Legislative Authority

• The Committee verifies:
  • Whether money was spent only for approved purposes and within authorized limits.
  • Whether re-appropriations were done according to rules.
  • This ensures that expenditure conforms strictly to Parliamentary sanction.

Ensuring Economy, Efficiency, and Effectiveness (EEE)

• PAC analyses expenditure for waste, inefficiency, or loss, beyond mere legality.
• It may scrutinize cases such as defence procurement with cost escalation or underutilization highlighted by the CAG.

Non-Partisan Accountability

• Opposition leadership of the Committee strengthens its independence and fosters objective oversight.

Limitations on Accountability

• Post-Facto Examination
  • PAC reviews spending after expenditure is incurred, making its role corrective rather than preventive. It cannot intervene at the policy formulation stage.
• Advisory Recommendations
  • PAC reports are recommendatory, not binding on the government, though they must be formally laid before Parliament.
• Limited Jurisdiction
  • PAC relies solely on CAG reports for investigation and cannot independently initiate inquiries or participate in administration.

Conclusion

The PAC plays a vital role in strengthening India’s parliamentary democracy by scrutinizing government expenditure and reinforcing financial accountability. Strengthening its Secretariat and making its recommendations more enforceable could enhance its effectiveness, ensuring proactive financial discipline rather than merely corrective action.