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

Context: The Public Accounts Committee (PAC) headed by senior opposition leader and Lok Sabha member will hold a performance review of “regulatory bodies established by Act of Parliament”, such as the Securities and Exchange Board of India (SEBI).

Public Accounts Committee (PAC)

• About: It was set up first in 1921 under the provisions of the Government of India Act of 1919 and has since been in existence.

o It 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.

• Composition: It 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.
• Member Elected: The members are elected every year from amongst its members of respective houses according to the principle of proportional representation by means of a single transferable vote. 
• The chairperson is appointed by: Lok Sabha Speaker. Until 1966 - ‘67, the chairman of the committee belonged to the ruling party. However, since 1967 a convention has developed whereby the chairman of the committee is selected invariably from the Opposition.
• Term of Office: 1 year.
• Functions:

o The PAC is responsible for auditing the revenue and the expenditure of the government.

o Review the accounts showing the income and expenditure of autonomous and semi-autonomous bodies audited by the Comptroller and Auditor General (CAG) of India.

o Consider reports of audits conducted by the CAG either under the President's direction or as per a statute of Parliament.

o Analyze cases where money has been spent beyond the amount granted by the House, review the reasons, and make suitable recommendations.