PUBLIC ACCOUNTS COMMITTEE
The Committee on Public Accounts is constituted by Parliament each year for examination of accounts showing the appropriation of sums granted by Parliament for expenditure of Government of India, the annual Finance Accounts of Government of India, and such other Accounts laid before Parliament as the Committee may deem fit such as accounts of autonomous and semi-autonomous bodies (except those of Public Undertakings and Government Companies which come under the purview of the Committee on Public Undertakings).
Constitution of the Committee The Committee consists of not more than 22 members comprising 15 members elected by Lok Sabha every year from amongst its members according to the principle of proportional representation by means of single transferable vote and not more than 7 members of Rajya Sabha elected by that House in like manner are associated with the Committee. The Chairman is appointed by the Speaker from amongst its members of Lok Sabha. The Speaker, for the first time, appointed a member of the Opposition as the Chairman of the Committee for 1967-68. This practice has been continued since then. A Minister is not eligible to be elected as a member of the Committee. If a member after his election to the Committee is appointed a Minister, he ceases to be a member of the Committee from the date of such appointment.
Change in set-up
From its inception in the year 1921 till early 1950, the Finance-member was appointed as the Chairman of the Committee and its Secretarial functions were looked after by the Finance Department (later Ministry of Finance).
With the coming into force of the Constitution of India on 26th January, 1950, the Committee became a Parliamentary Committee under the control of Speaker. Its Secretarial functions were transferred to the Parliament Secretariat (now Lok Sabha Secretariat).
Functions of the Committee
The Examination of the Appropriation Accounts relating to the Railways, Defence Services, P&T Department and other Civil Ministries of the Government of India and Reports of the Comptroller and Auditor-General of India thereon as also the Reports of the Comptroller and Auditor-General on Revenue Receipts mainly form the basis of the deliberation of the Committee. In scrutinising the Appropriation Accounts and the Reports of the Comptroller and Auditor-General thereon, it is the duty of the Committee to satisfy itself:
(a) that the money shown in the accounts as having been disbursed were legally available for and, applicable to the service or purpose to which they have been applied or charged;
(b) that the expenditure conforms to the authority which governs it; and
(c) that every re-appropriation has been made in accordance with the provisions made in this behalf under rules framed by competent authority.
One of the duties of the Committee is to ascertain that money granted by Parliament has been spent by Government within the scope of the demand. It considers the justification for spending more or less than the amount originally sanctioned. If any money has been spent on a service in excess of the amount granted by the House for the purpose, the Committee examines with reference to the facts of each case, the circumstances leading to such an excess and makes such recommendations as it may deem fit.
The functions of the Committee extend however, “beyond, the formality of expenditure to its wisdom, faithfulness and economy”. The Committee thus examines cases involving losses, nugatory expenditure and financial irregularities.
While scrutinising the Reports of the Comptroller and Auditor-General on Revenue Receipts, the Committee examines various aspects of Government’s tax administration. The Committee, thus examines cases involving under-assessments, tax-evasion, non-levy of duties, misclassifications etc., identifies the loopholes in the taxation laws and procedures and makes recommendations in order to check leakage of revenue.
Working of the Committee
The representatives of the Ministries appear before the Committee when examining the Accounts and Audit Reports relating to their Ministries. The Committee proceeds by way of interrogation of witnesses. The Comptroller and Auditor General is the “friend, philosopher and guide” of the Committee. He attends the sittings of the Committee and assists it in its deliberations.
The Committee may appoint one or more Sub-Committees/ Sub Groups to examine any particular matter. At the beginning of its term, the Committee appoints a few Working Groups/Sub Committees to facilitate the examination of the various Accounts and Audit Reports and Sub-Committee to consider the action taken by the Government on the recommendations made by the Committee in its earlier Reports. If it appears to the Committee that it is necessary for the purpose of its examination that an onthe-spot study should be made, the Committee may, either in its entirety or by dividing itself into Study Groups decide to undertake tours to make an on-the-spot study of any project or establishment. All discussions held during tour by the
Committee/Study Groups, with the representatives of the e s t a b l i s h m e n t , M i n i s t r i e s / D e p a r t m e n t s , n o n - o f f i c i a l organisations, Labour Unions etc. are treated as confidential and no one having access to the discussion, directly or indirectly is to communicate to the Press or any unauthorized person, any information about matters taken up during the discussions.
Reports presented by the Committee:
Since the Committee became a Parliamentary Committee under the control of the Speaker from 26th January, 1950, it has presented 1310 Reports till 5 February, 2004 (i.e. till the dissolution of the 13th Lok Sabha).
Government takes action on the recommendations of the Committee and submits action taken notes to the Committee. The Committee then present an Action Taken Report after considering the views of the Government. The Government further submit an “Action Taken Statement” on the action taken by the Government on the “Action Taken Report” of the Committee. The Action Taken Statement is generally laid before the House without any further examination by the Committee. Normally, almost all the recommendations of the Committee are implemented by the Government.
Lok Sabha, having voted large sums of the taxpayers’ money does, in the interest of the taxpayers, expect in due course a detailed account of how the moneys have been spent. It must satisfy itself that the moneys so voted were directed to the intended purposes and were spent prudently and economically. The Comptroller and Auditor General examines the yearly accounts of the Government and after scrutiny certifies the accounts, subject to such reservations as he chooses to make, and submits his reports to the President who causes them to be laid before Parliament. It is difficult, if not impossible, for Lok Sabha to examine in detail the accounts, which are complex and technical. Further it cannot spare the time required for such examination. It is for these reasons that Lok Sabha has constituted the Committee on Public Accounts and entrusted it with the detailed examination of those accounts.
Another important function of the Committee is the discussion on points of financial discipline and principle. The detailed examination of questions involving principle and system is a leading and recognised function of the Committee.
The Estimates Committee
The Estimates Committee, constituted for the first time in 1950, is a Parliamentary Committee consisting of 30 Members, elected every year by the Lok Sabha from amongst its Members. The Chairman of the Committee is appointed by the Speaker from amongst its members. A Minister cannot be elected as a member of the Committee and if a member after his election to the Committee, is appointed a Minister, he ceases to be a member of the Committee from the date of such appointment.
Term of Office
Term of Office
The term of office of the Committee is one year.
Functions
The functions of the Estimates Committee are:
(a) To report what economies, improvements in organization, efficiency or administrative reform, consistent with the policy underlying the estimates may be effected;
(b) To suggest alternative policies in order to bring about efficiency and economy in administration;
(c) To examine whether the money is well laid out within the limits of the policy implied in the estimates; and
(d) To suggest the form in which the estimates shall be presented to Parliament.
The Committee does not exercise its functions in relation to such Public Undertakings as are allotted to the Committee on Public Undertakings by the Rules of Procedure of Lok Sabha or by the Speaker. A list of subjects selected by the Committee for examination during 2003-2004 is given on pages 5-7. The Committee have also decided to finalise draft reports on the subjects on which evidence have been concluded by the previous Committee.
Working
Soon after it is constituted, the Committee selects such of the estimates pertaining to a Ministry/Department of the Central Government or such of the statutory and other bodies of the Central Government as may seem fit to the Committee. The Committee also examines matters of special interest which may arise or come to light in the course of its work or which is specifically referred to it by the House or the Speaker.
The Committee calls for preliminary material from the Ministry/Department, statutory and other Government bodies in regard to the subjects selected for examination and also memoranda from non-officials connected with the subjects for the use of the Members of the Committee.
The Committee, from time to time, appoints one or more Sub-Committees/Study Groups for carrying out detailed examination of various subjects. If it appears to the Committee that it is necessary for the purpose of its examination that an on-the-spot study should be made, the Committee may, with the approval of the Speaker decide to undertake tours to make a study of any particular matter, project or establishment, either as a whole Committee or by dividing itself into Study Groups. Notes relating to the institutions/offices etc. to be visited are called for in advance from the concerned Ministries/Departments etc. and circulated to the Members of the Committee/Sub- Committee/Study Group.
The Members while on tour may also meet the representatives of chambers of commerce and other nonofficial trade organizations and bodies which are concerned with the subjects under examination of the Committee, for an informal discussion.
When the Committee/Sub-Committee/Study Group is on study tour only informal sittings are held at the place of visit. At such sitting neither evidence is recorded nor are any decisions taken. All discussions held by the Committee with the representatives of the Ministries/ Departments, nonofficial organizations, etc. are treated as confidential and no one having access to the discussions directly or indirectly, should communicate to the Press or any unauthorized person any information about matters taken up during the discussions.
Later in the light of informal discussions during Study Tours, memoranda received from non-officials and information collected from the Ministry/Department concerned and other sources, non-official and official witnesses are invited to give evidence at formal sittings of the Estimates Committee held in Parliament House/Parliament House Annexe, New Delhi.
The observations/recommendations of the Committee are embodied in its Reports which are presented to Lok Sabha. After a Report has been presented to the House the Ministry or Department concerned is required to take action on the recommendations and conclusions contained in the Report within a period of six months. The replies of the Government are examined by the Committee and an Action Taken Report is presented to the House. The replies to the recommendations contained in the Action Taken Reports are laid on the Table of Lok Sabha in the form of Statements.
Achievements
Since its inception in April, 1950, the Committee has presented 922 Reports covering almost all the Ministries/ Departments of the Government of India. Out of these 480 are the Original Reports and 442 are Reports on Action Taken by the Government on earlier Reports of the Committee.
COMMITTEE ON PUBLIC UNDERTAKINGS
The Committee on Public Undertakings is a Parliamentary Committee consisting of 22 Members—fifteen elected by the Lok Sabha and seven by the Rajya Sabha, from amongst their Members, according to the principle of proportional representation by means of a single transferable vote. The Chairman is appointed by the Speaker from amongst the Members of the Committee. (For names of Chairmen who have served the Committee since its inception.
A Minister is not eligible to become a Member of the Committee. If a Member after his election to the Committee is appointed a Minister, he ceases to be a Member of the Committee from the date of such appointment.
The term of the Committee does not exceed one year
Functions
The functions of the Committee on Public Undertakings are:—
(a) to examine the reports and accounts of Public Undertakings specified in the Fourth Schedule
to the Rules of Procedure and Conduct of Business in Lok Sabha ;
(b) to examine the reports, if any, of the Comptroller and Auditor General of India on the Public
Undertakings ;
(c) to examine, in the context of the autonomy and efficiency of the Public Undertakings whether
the affairs of the Public Undertakings are being managed in accordance with sound business
principles and prudent commercial practices ; and
(d) to exercise such other functions vested in the Public Accounts Committee and the Estimates
Committee in relation to the Public Undertakings as are not covered by clauses (a), (b) and
(c) above and as may be allotted to the Committee by the Speaker from time to time.
Working of the Committee The Committee selects from time to time for examination such Public Undertakings or such subjects as they may deem fit and as fall within their terms of reference.
The Ministry/Undertaking concerned is asked to furnish necessary material relating to those subjects for the information of the Members of the Committee. The Committee may from time to time appoint one or more Study Groups for carrying out detailed examination of various subjects.
If it appears to the Committee that it is necessary for the purpose of its examination that on-the-spot study should be made, the Committee undertake tours to study any particular matter, project or undertaking.
Notes relating to the Undertakings/Offices etc. to be visited are called for in advance from the Ministries/Undertakings concerned and circulated to the Members of the Committee. These form the starting point for the informal discussion which the Committee holds at the projects etc.
When the Committee/Study Groups are on study tour only informal sittings are held at the place of visit and at such sittings neither evidence is recorded nor any decisions are taken.
The Members of the Committee while on tour may also meet informally the representatives of Chambers of Commerce and Industry, non-official organisations and bodies which are concerned with the subject under examination of the Committee.
Later in the light of these informal discussions of the Committee and the memoranda and other information received, non-official and official witnesses are invited to give evidence at formal sittings of the Committee held in Parliament House/Parliament House Annexe.
A l l d i s c u s s i o n s h e l d b y t h e C o m m i t t e e w i t h t h e representatives of the Undertakings/Ministries/Departments, non-official organisations, Labour Unions etc. are to be treated as confidential and no one having access to the discussions, directly or indirectly, should communicate to the Press or any unauthorised person any information about matters taken up during the discussions.
The observations/recommendations of the Committee are embodied in their reports which are presented to Parliament.
After a Report has been presented to the House, the Ministry or Undertaking concerned is required to take action on various recommendations and conclusions contained in the Report. The replies of the Government are examined by a Action Taken Sub-Committee/Committee and an Action Taken Report is presented to the House.
Achievements Since its inception in May, 1964, the Committee has presented 515 Reports so far. Of these, 258 are the Original
Reports and 257 are Reports on Action Taken by the Government on earlier Reports of the Committee. Out of 258 Original Reports, 33 are in the nature of horizontal studies on various aspects of working of the public undertakings.
From November, 2000, the Committee has started presenting to Parliament the Study Tour Reports pertaining to the functioning of individual undertakings with full-fledged recommendations/observations. The Committee has so far presented 51 Study Tour Reports.
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