Financial Committees in Parliament: Current Affairs

The main function of the Committee on Estimates is to report what improvements in organization, efficiency, or administrative reform, consistent with the policy underlying the estimates may be affected

They suggest alternative policies in order to bring about efficiency and economy in administration.

What is Public Accounts Committee?

Establishment:

The Public Accounts Committee was introduced in 1921 after its first mention in the Government of India Act, 1919 also called Montford Reforms.

The Public Accounts Committee is now constituted every year under Rule 308 of the Rules of Procedure and Conduct of Business in Lok Sabha.

Appointment:

The Chairman of the Committee is appointed by the Speaker of Lok Sabha.

It is to be noted that the Committee, not being an executive body, can only make decisions that are advisory by nature.

Members:

It presently comprises 22 members (15 members elected by the Lok Sabha Speaker, and 7 members elected by the Rajya Sabha Chairman) with a term of one year only.

Purpose:

It was framed with the purpose of ascertaining whether money granted to the Government by the Parliament has been spent by the former within the “scope of demand” or not, the PAC restricts any Minister from being elected as a member of it.

Functions:

To examine the accounts showing the appropriation of the sums granted by the House to meet the expenditure, the annual Finance Accounts of the government and,Such other accounts laid before the House as the Committee may think fit except those relating to such Public Undertakings as are allotted to the Committee on Public Undertakings.

Apart from the Reports of the Comptroller and Auditor General of India (CAG) on Appropriation Accounts of the Government, the Committee examines the various Audit Reports of the CAG on revenue receipts, expenditure by various Ministries/Departments of Government, and accounts of autonomous bodies.

What is Committee on Public Undertakings?

The Committee on Public Undertakings consists of 15 members elected by the Lok Sabha and 7 members of the Rajya Sabha.

A Minister is not eligible for election to this Committee. The term of the Committee is one year.

The functions of the Committee on Public Undertakings are—

(a) to examine the reports and accounts of Public Undertakings.

(b) to examine the reports, if any, of the Comptroller and Auditor General on Public Undertakings.

(c) to examine in the context of the autonomy and efficiency of the Public Undertakings whether the affairs of the Public Undertakings are being managed in accordance with sound business principles and prudent commercial practices.

(d) such other functions vested in the Committee on Public Accounts and the Committee on Estimates in relation to the Public Undertakings as are not covered by clauses (a), (b), and (c) above and as may be allotted to the Committee by the Speaker from time to time.

The Committee does not, however, examine matters of major Government policy and matters of the day-to-day administration of the Undertakings.

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Financial Committees