Public Accounts Committee (India)

Last updated
Public Accounts Committee
Financial Standing Committee
18th Lok Sabha
Founded 1921;103 years ago (1921)
(pre-independence)
1950;74 years ago (1950)
(post-independence)
CountryFlag of India.svg  India
Leadership
Chairperson K. C. Venugopal
Chairperson party Indian National Congress
Appointer Lok sabha Speaker
Structure
Seats22
Lok Sabha  : 15
Rajya Sabha  : 7
Political Parties   BJP (10)

   INC (4)
   SP (1)
   TDP (1)
   DMK (2)
   TMC (2)
   JSP (1)

Contents

   NCP (1)
Election criteriaThe members are elected every year from amongst its members of respective houses according to the principle of proportional representation.
Tenure1 Year
Jurisdiction
PurposeAuditing the revenue and the expenditure of the Government of India
Examine the audit report of Comptroller and Auditor General (C&AG)
Sub-committees
  • Non Compliance in timely submission of Action Taken Notes(ATN) on the non-selected audit paragraphs & excess expenditure
  • Direct and Indirect Taxes
  • Implementation of Recommendations of PAC
  • Railways
Rules & Procedure
Applicable rulesRule 308 & 309 (page 112 - 113)

The Public Accounts Committee (PAC) is a committee of selected members of parliament, constituted by the Parliament of India, for the purpose of auditing the revenue and the expenditure of the Government of India. They check that parliament exercises over the executive stems from the basic principle that parliament embodies the will of the people. This committee along with the Estimates committee (EC) and Committee on Public Undertakings (COPU) are the three financial standing committees of the Parliament of India. [1]

It serves as a check on the government especially with respect to its expenditure bill and its primary function is to examine the audit report of Comptroller and Auditor General (C&AG) after it is laid in the Parliament. C&AG assists the committee during the course of investigation. None of its members are allowed to be ministers in the government. The main function of the committee is to ascertain whether the money granted by parliament has been spent by government within the scope of the demand.

The Public Accounts Committee consists of not more than twenty-two members, fifteen elected by Lok Sabha, the lower house of the Parliament, and not more than seven members of Rajya Sabha, the upper house of the Parliament. The members are elected every year from amongst its members of respective houses according to the principle of proportional representation by means of single transferable vote. The chairperson is appointed by the Lok Sabha speaker. The term of office of the members is one year.

At present, the 18th Lok Sabha has Rahul Gandhi as leader of opposition, [2] and Indian National Congress (INC) being largest opposition party has the responsibility of heading the PAC. The current PAC is headed by K.C. Venugopal since August, 2024 [3] after Adhir Ranjan Chowdhury, who was the leader of INC in the Lok Sabha.

History

The committee was first conceived in the year 1921 in the wake of Montagu-Chelmsford Reforms. During the initial days of British colonial government in India, the finance member of the executive council was the chairperson of the committee.

Post independence, until 1950 the chairperson of the committee was the finance minister. However, in 1950, the country became republic and the committee became a parliamentary committee functioning under the control of the Speaker of Lok Sabha with a non-official chairperson. From 1950 to 1967, the chairperson was selected from the ruling party. Since 1967, the chairperson of the committee is selected from the opposition, usually the leader of opposition. [4]

Prior to the year 1954–55, the committee consisted of 15 members who were elected by Lok Sabha from amongst its members. But with effect from the year 1954–55, 7 members from the Rajya Sabha have also been elected to the committee. [5]

Scope and working

As stated earlier, the primary function of the PAC is to examine the audit report of Comptroller and Auditor General (C&AG) after it is laid in the Parliament. The audit by the C&AG is comprehensive and manifold. It involves among others, (a) accountancy audit, (b) regularity audit, (c) appropriation audit, (d) discretionary audit and (e) efficiency-cum-performance audit.

At the beginning of its term every year, the committee makes a selection of audit paragraphs included in the various reports of C&AG for in-depth examination. After holding deliberations and taking note of the time available at its disposal, the committee selects the most important paragraphs from the audit reports for detailed examination and submits its reports to the House on them.

Current composition

Keys:    BJP (10)    INC (4)    SP (1)    TDP (1)    DMK (2)    TMC (2)    JSP (1)    NCP (1) = 22 members

Party-wise membership of Public Accounts Committee

  BJP (45.45%)
  INC (18.18%)
  DMK (9.09%)
  TMC (9.09%)
  TDP (4.54%)
  SP (4.54%)
  JSP (4.54%)
  NCP (4.54%)
Members from 18th Lok Sabha; tenure August 24-29 [6]
Sr. No.PortraitNameConstituency, stateParty
1 K.C. Venugopal.JPG K. C. Venugopal (Chairman) Baharampur, West Bengal INC
2 IMG-Jpjattt.jpg Jai Parkash Hisar, Haryana
3Dr. Amar Singh Fatehgarh Sahib, Punjab
4 Ravi Shankar Prasad At Office.jpg Ravi Shankar Prasad Patna Sahib, Bihar BJP
5 Jagdambika Pal Domariyaganj, Uttar Pradesh
6 Aparajita Sarangi Bhubaneshwar, Odisha
7 Shri Anurag Singh Thakur in March 2023.jpg Anurag Singh Thakur Hamirpur, Himachal Pradesh
8 Tejasvi Surya.jpg Tejasvi Surya Bangalore South, Karnataka
9 Nishikant Dubey - Kolkata 2017-07-10 3371.JPG Nishikant Dubey Godda, Jharkhand
10 C. M. Ramesh Anakapalle, Andhra Pradesh
11 TRBaaluOfficialPicture.jpg T. R. Baalu Sriperumbudur, Tamil Nadu DMK
12 Magunta Sreenivasulu Reddy Ongole, Andhra Pradesh TDP
13 Dharmendra Yadav Azamgarh, Uttar Pradesh SP
14 Balashowry Vallabhaneni Machilipatnam, Andhra Pradesh JSP
15 Saugata Roy MP.jpg Prof. Sougata Roy Dum Dum, West Bengal TMC
Notes
    Members from the Rajya Sabha
    Sr. No.NameState LegislatureParty
    1 Shaktisinh Gohil Gujarat INC
    2 Ashok Chavan Maharashtra BJP
    3 Sudhanshu Trivedi Uttar Pradesh
    4 Dr. K. Laxman Uttar Pradesh
    5 Sukhendu Sekhar Ray West Bengal TMC
    6 Praful Patel Maharashtra NCP
    7 Tiruchi N. Siva Tamil Nadu DMK

    Sub-committees

    Currently there are 4 sub-committees within the PAC. They are as follows.

    Sub-Committees of Public Accounts Committee India
    Sr. No.Sub-committeeDate constitutedConvenorAlternate convenor
    1Sub-Committee – I (Non Compliance in Timely submission of Action Taken

    Notes on the Non-selected Audit Paragraphs & Excess Expenditure)

    16 August 2021 Shaktisinh Gohil
    2Sub-Committee - II (Direct and Indirect Taxes)26 July 2018 Shivkumar Chanabasappa Udasi Rajeev Gowda
    3Sub-Committee – III (Implementation of Recommendations of PAC)26 July 2018 Bhartruhari Mahtab Subhash Chandra Baheria
    4Sub-Committee – IV (Railways)26 July 2018 Sukhendu Sekhar Roy Ponnusamy Venugopal


    Probes in recent years

    The C&AG report on the 2G spectrum case stated a loss of ₹1.76 trillion (US$25 billion), based on 2010 3G and BWA spectrum-auction prices. [7] The ensuing differences resulting from the then opposition party BJP's demand to set up a joint parliamentary committee in addition to the PAC's inquiry into the 2G spectrum allocation case led to a complete freeze between the government and opposition in the winter session of parliament of 2010. The then PM Manmohan Singh stated that he was willing to appear before the committee. [8] This brought the committee to the forefront of the public's attention. Some of the probes since then are listed below :

    2G spectrum case (2008)

    The Comptroller and Auditor General (C&AG) laid out in its report a seething inquest of the case, showing how then telecom minister A Raja and bureaucrats allegedly colluded to show undue favour to companies that lied or misrepresented basic information in their applications for 2G licenses. The C&AG report on the 2G spectrum case stated a loss of ₹1.76 trillion (US$25 billion). The initial estimate of loss was 57,000 crores but was revised upward of 1.76 lakh crores. [9] The committee, on 4 April 2011, summoned Ratan Tata, chairman of the Tata group; and Niira Radia, a corporate lobbyist, regarding the case. [10] The then PAC chairperson Murli Manohar Joshi asked Congress members to apologise to Comptroller and Auditor General of India for making allegations against it. [11] [12]

    Commonwealth Games case (2010)

    The 2010 Commonwealth Games hosted by India was subject of multiple allegations of corruption. The Public Accounts Committee has faulted the then Congress-led UPA government for taking the games management out of the government machinery leading to a "number of errors" that almost resulted in the "biggest management failure". The report was tabled in Parliament in April 2017. [13]

    Adarsh housing case (2011)

    In 2011, a report of the Comptroller and Auditor General of India (C&AG) said, "The episode of Adarsh Co-operative Housing Society reveals how a group of select officials, placed in key posts, could subvert rules and regulations in order to grab prime government land – a public property – for personal benefit." [14]

    Coal block allocation case (2012)

    The C&AG in its report estimated undue benefits to the tune ₹1.86 trillion (US$26 billion) to private players on account of coal blocks allocation to them without resorting to auction. [15] [16] The essence of the C&AG's argument is that the Government had the authority to allocate coal blocks by a process of competitive bidding, but chose not to. [16] As a result, both public sector enterprises (PSEs) and private firms paid less than they might have otherwise.

    VVIP Helicopter acquisition case (2013)

    Chairperson K V Thomas said in 2016 that the PAC was willing to take up the VVIP case again, although PAC, when it was headed by his predecessor and senior BJP leader Murli Manohar Joshi, had examined the report of the Comptroller and Auditor General (CAG) in 2013. [17]

    Demonetisation of November 8, 2016

    On the eve of November 8, 2016, Prime Minister of India, Narendra Modi announced "Notes of 500 (US$6.00) and 1,000 (US$12) will not remain a legal tender by midnight". Being an unprecedented step it was much highlighted in the national and international news with a number of people criticizing the move and government acclaiming it as a surgical strike against black money. But then PAC head K. V. Thomas, member of INC, took a serious note of the move and started probing the move wherein it decided to call RBI governor Urjit Patel, Finance Secretary Ashok Lavasa and Economic Affairs Secretary Shaktikanta Das. The decision was taken unanimously by all the members of the committee to call the bureaucratic officers. [18]

    Chairpersons

    Pre-independence

    Sr. No.NameTerm of officeNo. of Terms
    1 W. M. Hailey 19221
    2 Sir Basil P. Blackett 1922–276
    3 Sir Bhupendra Nath Mitra 19281
    4 Sir George Schuster 1929–313
    5Sir Alan Parson19321
    6A. H. Lloyd19331
    7 Sir James Grigg 1934–363
    8J. C. Nixon19371
    9 Sir James Grigg*19381
    10 Sir Jeremy Raisman 1939–413
    11C. E. Jones19421
    12Sir Jeremy Raisman*19431
    12Sir Cyril Jones19441
    13 Sir Archibald Rowlands 19451
    14Sir Eric Coates1946Last pre-independence

    committee

    15 John Mathai
    16 Liaquat Ali Khan

    * Served second non-consecutive terms

    Post Independence

    Sr. No.PortraitNameTerm of officeTermsPolitical party
    (Alliance)
    1 R. K. Shanmukham Chetty 1947–481 INC
    2 John Mathai 1948–491
    3B. Das1950–555
    4 V. B. Gandhi 1955–572
    5 T. N. Singh 1957–581
    6 N. G. Ranga 1958–591
    7 P. Subbarayan 1959–601
    8Upendranath Barman1960–611
    9 C. R. Pattabhiraman 1961–621
    10 Mahavir Tyagi 1962–631
    11 R. K. Khadilkar 1963–641
    12R. R. Morarka1964–671
    13 Minoo Masani 1967–69 2 Swatantra
    14 Atal Bihari Vajpayee 2002-06-12.jpg Atal Bihari Vajpayee 1969–712 BJS
    15 Era Sezhiyan 1971–732 DMK
    16 Jyotirmoy Basu 1973–752 CPI(M)
    17 Hirendranath Mukherjee 1975–772 CPI
    18 C. M. Stephen 1977–781 INC
    19 P. V. Narasimha Rao 1978–791
    20 T. A. Pai 1979–80*partial
    21 R. Venkataraman 1979–80*partial
    22 Chandrajit Yadav 1980–811 JNP(S)
    23 Satish Chandra Agarwal 1981–832 BJP
    24 Sunil Maitra 1983–852 CPI(M)
    25E. Ayyapu Reddy1985–872 TDP
    26Amal Dutta1987–892 CPI(M)
    27 P. Kolandaivelu 1989*partial AIDMK
    28 Santosh Mohan Dev 1990–911 INC
    29 Atal Bihari Vajpayee 2002-06-12.jpg Atal Bihari Vajpayee 1991–932 BJP
    30 Bhagwan Shankar Rawat 1993–952
    31 Ram Naik 1995–961
    32 Murli Manohar Joshi 1996–982
    33 Manoranjan Bhakta 1998–991 INC
    34 N. D. Tiwari 1999–2002*2 partial
    34 N. Janardhana Reddy 2002*partial
    35 Buta Singh 2002–042
    36 Vijay Kumar Malhotra 2004–09*4 partial BJP
    37 Santosh Gangwar 2009*partial
    38 Jaswant Singh 2009–10partial
    39 Gopinath Munde 2010partial
    40 Murli Manohar Joshi MP.jpg Murli Manohar Joshi 2010–144
    41 KV Thomas.jpg K V Thomas 2014–162 INC
    42 The Union Minister for Labour and Employment, Shri Mallikarjun Kharge addressing the G 20 Labour Ministers Conference, at Paris, France on September 27, 2011.jpg Mallikarjun Kharge 2016–20192
    43 The Minister of State for Railways, Shri Adhir Ranjan Chowdhury addressing at the presentation of the National Awards for Outstanding Service in Railways, in Mumbai on April 16, 2013.jpg Adhir Ranjan Chowdhury 2019-20245
    44 K.C. Venugopal.JPG K.C. Venugopal 2024 - incumbent

    Denotes the year 1967–68 from when the chairman of the PAC was member of the main opposition party, usually the leader of opposition.

    Longest serving chairpersons of PAC

    Longest Serving Chairmen of PAC - Post Independence
    Sr. No.NameTermsYearsParty
    1 Murli Manohar Joshi 61996–98, 2010–2014 BJP
    2B. Das51950–55 INC
    3 Atal Bihari Vajpayee 41969–71, 1991–93 BJP

    Reports Published

    As part of its oversight process the committee has published quite a number of reports over the course of its existence post declaration of republic in 1950. The committee has published a total of 1596 reports from 1950 to April 2018.

    1596 Reports published until April 2018
    Lok SabhaTenureReports Presented
    1st Lok Sabha 1952–5725
    2nd Lok Sabha 1957–6243
    3rd Lok Sabha 1962–6772
    4th Lok Sabha 1967–70125
    5th Lok Sabha 1971–77239
    6th Lok Sabha 1977–79149
    7th Lok Sabha 1980–84231
    8th Lok Sabha 1984–89187
    9th Lok Sabha 1989–9122
    10th Lok Sabha 1991–96119
    11th Lok Sabha 1996–9724
    12th Lok Sabha 1998–9911
    13th Lok Sabha 1999–0463
    14th Lok Sabha 2004–0984
    15th Lok Sabha 2009–14100
    16th Lok Sabha 2014–2019102

    See also

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