{"id":87961,"date":"2026-11-04T18:06:53","date_gmt":"2026-11-04T12:36:53","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=87961"},"modified":"2026-11-04T18:07:26","modified_gmt":"2026-11-04T12:37:26","slug":"public-accounts-committee-pac-2","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/04-11-2026\/public-accounts-committee-pac-2","title":{"rendered":"PACs Ensure Efficient use of Public Money: Lok Sabha Speaker"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/ Polity and Governance<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lok Sabha Speaker urged<strong> Public Accounts Committees (PACs)<\/strong> for time-bound action on pending audit observations and greater scrutiny of the outcomes of government spending.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Recommendations by LS Speaker<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>For infrastructure projects,<\/strong> committees should, wherever appropriate, visit sites to examine construction quality, timely completion and compliance with prescribed standards.<\/li>\n\n\n\n<li><strong>Scrutiny of welfare schemes<\/strong> should assess their actual impact on beneficiaries rather than focus solely on the amount spent, he said.<\/li>\n\n\n\n<li><strong>Artificial intelligence, data analytics and other technologies<\/strong> could help committees analyse large volumes of expenditure data, identify trends, detect potential irregularities and monitor pending audit observations.<\/li>\n\n\n\n<li><strong>Parliamentary Discussion:<\/strong> At least one PAC report, along with the government\u2019s action taken on it, be discussed during every session of Parliament.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About Public Accounts Committee (PAC)<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Public Accounts Committee (PAC) is a <strong>parliamentary committee<\/strong> that <strong>examines the government&#8217;s expenditure <\/strong>and ensures that public money is spent in accordance with the approval granted by Parliament.<\/li>\n\n\n\n<li>It is <strong>one of the three Financial Committees of Parliament,<\/strong> along with:\n<ul class=\"wp-block-list\">\n<li>Estimates Committee.<\/li>\n\n\n\n<li>Committee on Public Undertakings.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>It was established in <strong>1921,<\/strong> following the Government of India Act, 1919.\n<ul class=\"wp-block-list\">\n<li>It is a<strong> Standing Parliamentary Committee, <\/strong>a standing committee is a specific type of parliamentary committee that is permanent and continuous, reconstituted periodically.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Constitutional Status:<\/strong> Not a constitutional body; formed under <strong>Rule 308<\/strong> of the <strong>Rules of Procedure and Conduct of Business<\/strong> in <strong>Lok Sabha<\/strong>.<\/li>\n\n\n\n<li><strong>Composition: <\/strong>22 members (15 from <strong>Lok Sabha<\/strong>, 7 from <strong>Rajya Sabha<\/strong>)\n<ul class=\"wp-block-list\">\n<li>Members are elected by <strong>Parliament every year<\/strong> through the system of <strong>proportional representation by means of a single transferable vote.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The term of office of members is <strong>one year.<\/strong><\/li>\n\n\n\n<li><strong>A minister cannot be elected as a member of the PAC.<\/strong><\/li>\n\n\n\n<li>The Chairperson is appointed by the<strong> Speaker of the Lok Sabha.<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Since 1967,<\/strong> by convention, the <strong>Chairperson of the PAC is appointed from the Opposition.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Functions:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Examines <strong>audit reports of the CAG of India,<\/strong><\/li>\n\n\n\n<li>Scrutinises <strong>public expenditure<\/strong> to ensure it is not extravagant or irregular.<\/li>\n\n\n\n<li>Ensures accountability of the <strong>Executive to the Legislature.<\/strong><\/li>\n\n\n\n<li>Works in tandem with <strong>CAG<\/strong> to maintain <strong>fiscal discipline and transparency.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are Parliamentary Standing Committees?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Parliamentary Standing Committees (PSCs) are <strong>permanent committees of Parliament<\/strong> constituted to examine, scrutinise, and oversee the functioning of the executive.<\/li>\n\n\n\n<li>These committees<strong> continue to function throughout the year,<\/strong> unlike ad hoc committees which are temporary.<\/li>\n\n\n\n<li><strong>Types of Parliamentary Standing Committees:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Department-Related Standing Committees (DRSCs):<\/strong> It examines demands for Grants of ministries, bills referred to them and policy issues. Example: Parliamentary Standing Committee on Finance.<\/li>\n\n\n\n<li><strong>Financial Committees:<\/strong> Public Accounts Committee (PAC), Estimates Committee and Committee on Public Undertakings.<\/li>\n\n\n\n<li><strong>Other Standing Committees: <\/strong>Business Advisory Committee, Committee on Privileges and Rules Committee.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Role of Parliamentary Standing Committees<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Detailed Financial Scrutiny Beyond Parliament:<\/strong> Parliamentary debates often lack time for detailed examination of budgetary provisions.\n<ul class=\"wp-block-list\">\n<li>Standing Committees undertake <strong>granular scrutiny of Demands for Grants, <\/strong>expenditure trends, and utilisation patterns.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Evidence-Based and Non-Partisan Oversight:<\/strong> Committees function in a non-partisan manner, relying on <strong>expert inputs and data-driven analysis<\/strong>. Their reports provide <strong>objective evaluation of policy implementation and fiscal discipline.<\/strong><\/li>\n\n\n\n<li><strong>Monitoring of Executive Functioning: <\/strong>Committees operate throughout the year and ensure continuous oversight over ministries and departments. This enhances transparency and accountability in governance.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges in India\u2019s Budgetary Forecasting and Utilisation<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Unrealistic and Inflated Budgetary Forecasting:<\/strong> Ministries often project expenditure requirements without realistic assessment of implementation capacity. The continuous rise in allocations despite poor utilisation reflects weak forecasting mechanisms.<\/li>\n\n\n\n<li><strong>Underutilisation of Allocated Funds: <\/strong>There exists a significant gap between Budget Estimates (BE) and Actual Expenditure (AE). Underutilisation leads to idle public resources and delayed developmental outcomes.<\/li>\n\n\n\n<li><strong>Incremental Budgeting without Outcome Orientation: <\/strong>Budget allocations continue to rise annually without linking them to past performance or outcomes.\n<ul class=\"wp-block-list\">\n<li>This reflects the dominance of input-based budgeting rather than outcome-based budgeting.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Fiscal Indiscipline: <\/strong>Ministries resort to excessive spending in the final quarter to exhaust allocated funds. Such spending <strong>violates Quarterly Expenditure Plan (QEP) <\/strong>norms and fiscal prudence principles.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The observations of the Parliamentary Committee reaffirm its critical role in <strong>ensuring executive accountability<\/strong> and fiscal prudence.<\/li>\n\n\n\n<li>Strengthening outcome-based budgeting and integration of policy with finance is essential for improving <strong>governance outcomes and restoring credibility <\/strong>to India\u2019s fiscal framework.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/ddnews.gov.in\/en\/every-rupee-of-public-money-must-be-accounted-for-and-utilised-for-its-intended-purpose-lok-sabha-speaker-om-birla\/\" target=\"_blank\" rel=\"noopener\"><strong>DD<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> Lok Sabha Speaker urged Public Accounts Committees (PACs) for time-bound action on pending audit observations and greater scrutiny of the outcomes of government spending. <\/li>\n<p><\/p>\n<p><strong>Recommendations by LS Speaker  <\/strong><\/p>\n<li class=\"ms-5\"> \u00a0For infrastructure projects, committees should, wherever appropriate, visit sites to examine construction quality, timely completion and compliance with prescribed standards. <\/li>\n<li class=\"ms-5\">  Scrutiny of welfare schemes should assess their actual impact on beneficiaries rather than focus solely on the amount spent, he said.<\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/04-11-2026\/public-accounts-committee-pac-2 \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-87961","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87961","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=87961"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87961\/revisions"}],"predecessor-version":[{"id":87964,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87961\/revisions\/87964"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=87961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=87961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=87961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}