The Public Accounts Committee (PAC) serves as a fundamental standing committee of the Indian Parliament which originated through the Government of India Act established in 1919. The committee includes 22 members who consist of 15 Lok Sabha members and 7 Rajya Sabha members to review the CAG audit reports which assess government appropriation and finance accounts for compliance with legal requirements and parliamentary grants and for detection of waste and irregular spending. The PAC examines financial excesses and public sector financial statements and operational efficiency to provide recommendations which enhance financial accountability and promote effective governance while serving as the Parliament's financial oversight body for public spending.

The Public Accounts Committee (PAC) of India primarily examines Comptroller and Auditor General (CAG) audit reports on government revenue and expenditure to ensure parliamentary grants are spent within authorized scopes.

Core Functions

• The PAC conducts three different types of audits which include appropriation audits and regularity audits and performance audits to determine whether public funds were spent according to legal requirements and operational standards and efficiency standards.
• The organization examines annual Finance Accounts and Appropriation Accounts together with reports about state corporations and autonomous bodies while excluding any assessment of policy matters.
• The PAC conducts investigations into irregularities with assistance from the CAG by calling officials to provide evidence and presenting its findings to Parliament together with recommendations for accountability purposes.

• The Public Accounts Committee (PAC) serves as India's main financial monitoring body which protects public funds through its mandate to hold the executive branch accountable for expenditures.
• The committee which operates under Rule 308 of Lok Sabha Rules conducts audits of CAG reports which assess Appropriation Accounts and Finance Accounts and revenue.
• The committee checks whether the funds used match the budget that Parliament approved to determine their legal status and proper usage and checking operational efficiency.
• The Public Accounts Committee (PAC) investigates irregularities through its investigations of the 2G spectrum and coal scam to uncover wasteful spending and corrupt activities which lead to government program failures and financial misconduct.
• The reports which the organization submits to Parliament include suggestions that require ministries to answer back about their implementation.
• The reports to Parliament create accountability because they require ministries to provide answers which lead to both corrective actions and improved governance practices.
• PAC maintains democratic control through its activities which build public confidence and its functions which enforce fiscal responsibility although it faces obstacles from its restrictive ability to investigate past events and its complete absence of enforcement capabilities.
• The organization would benefit from pre-emptive audit reforms which would increase its ability to operate outside its current work methods.
• The Public Accounts Committee (PAC) functions as a necessary link between lawmakers and executive officials because it enables the public to see how government officials use their authority.

2025-26 Session Reports: PAC (18th Lok Sabha) tabled reports on February 4, 2026, including action taken on prior recommendations like irregularities in transactions and punitive measures by ministries.

PRS Updates (Feb 2026): Active deliberations on draft reports covering Defence University delays, Chandigarh police pay audits, IIT performance, groundwater management, and Bharatmala Phase-I implementation.

The Public Accounts Committee (PAC) remains indispensable for upholding fiscal accountability and parliamentary supremacy in India. Despite limitations like post-facto scrutiny, its rigorous examination of CAG reports- evident in recent 2025-26 audits on defence, infrastructure, and schemes- deters mismanagement and drives reforms amid ongoing controversies such as I-PAC raids and LIC allegations. Strengthening PAC through technology, pre-emptive powers, and timely Action Taken Reports would further enhance transparency and good governance.

What is the composition of PAC?

PAC has 22 members: 15 elected from Lok Sabha, 7 from Rajya Sabha via proportional representation. Chairperson from opposition by convention; one-year term under Rule 308.

What are PAC's main functions?

Examines CAG reports on government appropriation, finance accounts, revenue for legality, regularity, efficiency. Probes irregularities, summons officials; submits advisory reports to Parliament excluding policy.

Why is PAC significant?

Acts as Parliament's financial watchdog, ensuring executive accountability, exposing waste/corruption (e.g., 2G scam), promoting fiscal discipline and transparency despite post-facto limitations.