Subject: Indian Polity

The Public Accounts Committee (PAC), established in 1921, serves as Parliament's watchdog for public expenditure and plays a crucial role in ensuring financial accountability of the executive to the legislature and ultimately to the citizens. The committee's effectiveness is evident from recent data showing 76% of its recommendations resulting in concrete government action.

Structure and Composition

• PAC consists of 22 members (15 from Lok Sabha and 7 from Rajya Sabha) elected through proportional representation.
• Traditionally chaired by a member from the Opposition party to ensure impartial scrutiny.
• Supported by the Comptroller and Auditor General (CAG) who acts as a friend, philosopher, and guide.

Functions and Powers

• Examines the annual audit reports of the CAG relating to appropriation of funds.
• Scrutinizes cases of financial irregularities, wasteful expenditure, and efficiency of public spending.
• Reviews the functioning of public sector undertakings and their financial performance.
• Makes recommendations to improve financial governance and administrative efficiency.

Role in Ensuring Accountability

• Acts as a deterrent against financial mismanagement through regular scrutiny of government accounts.
• Brings transparency through detailed examination of public expenditure and revenue collection.
• Ensures implementation of CAG recommendations through follow-up mechanisms.
• Recent success includes ensuring government's commitment to provide six-monthly updates to Parliament on major projects.

Challenges and Limitations

• Lacks executive powers to enforce its recommendations.
• Time lag between expenditure occurrence and its examination.
• Limited technical expertise in examining complex financial matters.
• Increasing volume of work affecting the quality of scrutiny.

Way Forward

• Strengthening the committee's powers through legislative reforms.
• Enhancing technical support and research capabilities.
• Implementing a robust follow-up mechanism for recommendations.
• Leveraging technology for real-time monitoring of public expenditure.

The PAC's role remains fundamental in upholding the principles of parliamentary oversight and fiscal responsibility. Its success rate of 76% recommendation implementation demonstrates its effectiveness in ensuring good governance through financial accountability, making it an essential institution of our democratic framework.