Public Accounts Committee

Background and evolution

Parliament grants money, but it cannot by itself check how every rupee is spent. In the Westminster tradition, this task falls to a committee working with the national auditor. India's Public Accounts Committee was first constituted in 1921 under the Government of India Act 1919, and it became a committee of Parliament after the Constitution came into force.

A key convention began in 1967, when the Speaker appointed an opposition member as chairperson for the first time. The logic is simple: the committee scrutinises the government's spending, so it is more credible if led by someone outside the ruling party. Since then, PAC chairs have usually come from the main opposition party.

Key features and provisions

• Composition: 15 members from the Lok Sabha and 7 from the Rajya Sabha, elected every year by proportional representation through single transferable vote.
• Chairperson: appointed by the Speaker from among the members.
• Exclusion of ministers: a member who becomes a minister ceases to be a member.
• Functions: examines the appropriation accounts and finance accounts of the Union government and the CAG's reports on them; checks whether money was spent for the purposes and within the amounts granted; examines cases of excess spending and whether such excess should be regularised by Parliament.
• Role of the CAG: the CAG acts as the committee's "friend, philosopher and guide", helping it scrutinise audit findings.
• Reports and action: the committee's reports are presented to the Lok Sabha; ministries must send Action Taken Notes on its recommendations.