PUBLIC ACCOUNTS COMMITTEE (Syllabus: GS Paper 2 – Polity)

Context: The Public Accounts Committee (PAC) is expected to meet on October 25, where they will use recently presented Comptroller and Auditor General (CAG) reports to assess government financial performance during the monsoon session.

Public Accounts Committee (PAC)

• About: The PAC holds the distinction of being the oldest parliamentary committee in Indian legislative affairs and plays a pivotal role in upholding accountability by overseeing public expenditure.
• Established: In 1921 in the aftermath of the Montague-Chelmsford Reforms.
• Members: 22 members, elected through a proportional representation system utilizing the single transferable vote method.

oAnnually, fifteen members are elected from the Lok Sabha among its members.

oAdditionally, the Rajya Sabha elects seven members following a similar process to join the Committee.

• Representation within the Committee: This method of election ensures that every political party or group is fairly represented on the Committee in accordance with their respective strengths in the two Houses.

Comptroller and Auditor General (CAG)

• About: The Constitution of India establishes the independent office of the Comptroller and Auditor General of India (CAG).
• The CAG serves as the head of the Indian Audit and Accounts Department and holds the responsibility of safeguarding the public funds and overseeing the entire financial system of both the Central and State governments.
• Appointment: The President appoints the CAG through a formal warrant bearing his hand and seal.
• It is the duty of the CAG to uphold the Constitution of India and adhere to the laws enacted by Parliament in the realm of financial administration.
• Evolution: The concept of the CAG originated during British India. In May 1858, a distinct department was established, featuring an Accountant General who was accountable for auditing and managing financial transactions conducted under the East India Company (EIC).
• Conditions of Service: The salary and other terms of service for the CAGl are subject to determination by Parliament through legislation. Until such determination, these conditions remain as specified in the Second Schedule.