Model Answer
0 min readIntroduction
The Public Accounts Committee (PAC) is a crucial parliamentary committee in India, often hailed as one of the most important mechanisms for ensuring financial accountability of the executive to the legislature, and by extension, to the people. Established in 1950 under the Government of India (Allocation of Business) Rules, 1961, the PAC examines the reports of the Comptroller and Auditor General (CAG) of India. Its primary function is to scrutinize public expenditure and ensure that money voted by Parliament is spent efficiently and with propriety. In a democratic setup, such oversight is vital for maintaining public trust and good governance.
Functions of the PAC and Establishing Accountability
The PAC’s role in establishing accountability stems from its core functions:
- Examining CAG Reports: The PAC meticulously examines reports submitted by the CAG, which highlight instances of financial irregularities, inefficiencies, and deviations from established rules and procedures.
- Calling for Explanations: It can summon government officials, including Secretaries to the Government of India, and demand explanations for discrepancies pointed out by the CAG.
- Reviewing Trends: The PAC doesn’t just focus on individual cases; it also reviews trends in expenditure and identifies systemic issues that lead to financial mismanagement.
- Making Recommendations: Based on its findings, the PAC submits reports to Parliament with recommendations for corrective action. These recommendations, though not binding, carry significant moral weight and often lead to administrative reforms.
- Post-Expenditure Audit: The PAC conducts a post-expenditure audit, meaning it examines how funds were actually spent *after* they have been allocated and utilized.
Examples of PAC’s Accountability Mechanisms
The PAC has a rich history of holding the government accountable. Some notable examples include:
- 2G Spectrum Scam (2010): The PAC, under Murli Manohar Joshi, played a significant role in investigating the 2G spectrum allocation scam, bringing to light the irregularities and estimated losses to the exchequer. Its report was instrumental in raising public awareness and prompting further investigations.
- Commonwealth Games Scam (2010): The PAC investigated allegations of corruption and mismanagement in the organization of the 2010 Commonwealth Games, exposing financial irregularities and holding officials accountable.
- Coal Block Allocation Scam (2012): The PAC examined the allocation of coal blocks and highlighted the lack of transparency and fairness in the process, leading to the cancellation of several allocations by the Supreme Court.
- Air India’s Financial Crisis: In recent years, the PAC has scrutinized Air India’s financial performance and the government’s bailout packages, questioning the efficiency of the airline and the rationale behind the financial support.
Limitations of the PAC
Despite its importance, the PAC faces certain limitations:
- Recommendations are not Binding: The PAC’s recommendations are advisory in nature and the government is not legally bound to implement them.
- Political Influence: The composition of the PAC is determined by the ruling party, which can potentially influence its investigations and findings.
- Time Constraints: The PAC has a limited time frame to examine a large number of CAG reports, which can hinder its ability to conduct thorough investigations.
- Lack of Enforcement Powers: The PAC lacks the power to enforce its recommendations or impose penalties on erring officials. It relies on the government to take action.
To enhance its effectiveness, strengthening the PAC’s independence, providing it with more resources, and giving its recommendations greater weightage are crucial steps.
Conclusion
The Public Accounts Committee remains a cornerstone of parliamentary oversight in India, playing a vital role in ensuring financial accountability and promoting good governance. While it faces limitations, its ability to scrutinize public expenditure and demand explanations from the executive is essential for maintaining public trust and preventing financial mismanagement. Strengthening the PAC’s independence and empowering it with greater authority will further enhance its effectiveness in holding the government accountable to the people.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.