Public Accounts Committee (PAC)

Why in News?

The Public Accounts Committee, led by K.C. Venugopal, has directed the DGCA to conduct a full safety audit of all aircraft in India, amid concerns over air safety and arbitrary airfare surges following a fatal Air India crash.

Description:

• PAC is one of the three Financial Parliamentary Committees:
  • Public Accounts Committee (PAC)
  • Estimates Committee
  • Committee on Public Undertakings
• Known as the “Mother of all Parliamentary Committees” for its critical role in ensuring executive accountability.

Establishment & Composition:

• Established: In 1921 following the Montagu-Chelmsford Reforms.
• Constitutional Basis: Constituted annually under Rule 308 of the Lok Sabha Rules of Procedure and Conduct of Business.
• Total Members:22 Members of Parliament
  • 15 from Lok Sabha
  • 7 from Rajya Sabha
• Ministers are not eligible to be members.
• Term: One year.

Chairperson:

• First Chairperson: W.M. Hailey
• First Indian Chairperson: Bhupendra Nath Mitra
• Appointed by: Speaker of the Lok Sabha
• Since 1967, the Chairperson has been chosen from the Opposition.

Unique Features:

• Oldest and first Parliamentary Committee to counter the government.
• Has wider jurisdiction than any Department-related Standing Committee.
• Empowered to summon any person for its investigations.
• Recommendations are binding on the government.
• Adopts reports by consensus, unlike other committees that allow dissent notes – ensuring neutrality.

Functions of the Public Accounts Committee (PAC):

1. Examines government expenditures to ensure they are within the bounds of Parliamentary approval.
2. Scrutinizes financial transactions and compares actual spending with sanctioned amounts.
3. Reviews CAG reports on government financial operations.
4. Identifies cases of financial mismanagement and irregularities.
5. Recommends corrective measures to improve financial discipline and accountability.
6. Submits reports to Parliament with findings and suggestions.
7. Conducts public opinion exercises to promote transparency and public scrutiny.

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