Public Accounts Committee (PAC)

• Nature: Public Accounts Committee (PAC) is a Parliamentary Financial Committee.
• Composition: It consists of 22 members — 15 from Lok Sabha and 7 from Rajya Sabha.
• Election: Members are elected through Proportional Representation by means of Single Transferable Vote (STV).
• Term: The term of members is one year.
• Chairperson: The Speaker of Lok Sabha appoints the Chairperson.
• Opposition Convention: By convention, since 1967, the Chairperson is generally from the Opposition.
• Main Function: It examines the reports of the Comptroller and Auditor General (CAG).
• Appropriation Accounts: It examines whether money granted by Parliament has been spent for the purpose for which it was granted.
• Excess Expenditure: It scrutinises expenditure that exceeds the amount granted by Parliament.
• Role: It ensures financial accountability of the Executive to Parliament.
• Important Limitation: PAC does not examine the wisdom of government policy; it primarily examines the legality, regularity and propriety of expenditure.

Quick Revision

PAC → 22 Members → 15 LS + 7 RS → 1 Year → CAG Reports → Financial Accountability

Prelims Question – English

Q. With reference to the Public Accounts Committee (PAC), consider the following statements:

1. It consists of members from both the Lok Sabha and the Rajya Sabha.
2. Its members are elected for a term of one year.
3. It examines the reports of the Comptroller and Auditor General of India.
4. Its Chairperson is appointed by the President of India.

Which of the statements given above are correct?

(a) 1, 2 and 3 only
(b) 1 and 4 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Answer: (a) 1, 2 and 3 only

Explanation

• Statement 1 is correct: PAC includes members from both Houses of Parliament.
• Statement 2 is correct: The members hold office for one year.
• Statement 3 is correct: PAC examines the reports of the CAG.
• Statement 4 is incorrect: The Chairperson is appointed by the Speaker of the Lok Sabha, not by the President.