Set up under the Government of India Act of 1919, the Public Accounts Committee functions as a watchdog over the Government’s finances. It examines the audit reports of the Comptroller and Auditor General of India, which are presented to the Parliament by the President. It tries to find technical irregularities, questions the government’s priorities, and checks corruption, losses, and inefficiencies. 

Composition and Term of Office

  • It consists of 22 members – 15 from the Lok Sabha and 7 from the Rajya Sabha
  • They are elected from existing members, using proportional representation and utilising the single transferable vote
  • A minister cannot be a member of the Public Accounts Committee
  • By a convention since 1967, the committee has been headed by a member of the Opposition parties
  • Term of Office – 1 year.

Functions of Public Accounts Committee

  • It examines appropriations and finance accounts of the Union Government and any other accounts presented to Parliament.
  • It scrutinises the actual expenditure vs the expenditure sanctioned by the Parliament via the Appropriation Act.
    • The committee has to ensure that money is disbursed and available for any purpose.
    • Expenditure complies with the authority that governs it.
    • Re-appropriations have been made as per the rules.
    • Finance Accounts – Annual receipts and disbursements of the Government.
  • It examines state corporations’ trading and manufacturing projects.
  • It examines autonomous and semi-autonomous bodies that the CAG has audited
  • It examines any excess expenditure 
  • It examines the CAG report on any particular receipt and accounts of stores and stocks.
  • The CAG assists the Public Accounts Committee while it performs its essential functions. 

Limitations of the Committee

  • Not involved with broader policies
  • Cannot intervene in matters of day to day expenditure
  • Recommendations are advisory and not binding on the government.
  • Cannot issue orders as it is not an executive body – Only Parliament can act on the committee’s findings.
  • Not vested with powers to disallow expenditure of departments.

Conclusion

The Public Accounts Committee is an essential functionary in parliamentary democracy despite its limitations. It helps root out corruption from the Government and safeguards the public wallet. It allows the Parliament to perform its significant role of holding the executive responsible by questioning its expenditures and preventing irregularities.