The Public Accounts Committee (PAC) to hold ‘performance review’ of regulatory bodies such as the Securities and Exchange Board of India (SEBI).

Subjects of Performance Review

The Public Accounts Committee is responsible for auditing the revenue and the expenditure of the government.

• It has picked 160 subjects for deliberations during its tenure, which includes:
  • Review of regulatory bodies like the SEBI and TRAI
  • Audit of ‘fees, tariffs, user charges’ levied on public infrastructure such as airports 

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About Public Accounts Committee (PAC)

It is one of the three Financial Parliamentary committees, the other two being the Estimates Committee and the Committee on Public Undertakings.

• Establishment: The PAC is one of the oldest Parliamentary committees that was established in 1921 following the Montagu Chelmsford Reforms. 
  • The PAC is constituted every year under Rule 308 of the Rules of Procedure and Conduct of Business in Lok Sabha.
• Chairperson: W M Hailey was its first Chairperson.
  • Bhupendra Nath Mitra was its first Indian Chairperson.
  • The Chairperson is appointed by the Speaker of the Lok Sabha. Since 1967, the chairperson of the committee is selected from the opposition.
• Members: The PAC consists of 22 members of parliament, of which 15 are from Lok Sabha and 7 from Rajya Sabha. 
  • A minister is not eligible to be elected as a member of the Committee.
• Term of Office: One Year
• Uniqueness: The PAC is known as the “mother of all Parliamentary Committees” because of its role in holding the executive accountable for how it uses public money.
  • Things that distinguish the PAC from the other parliamentary committees:
    • It was the first and original parliamentary committee formed to counter the government of the day. 
    • It has a far greater ambit than any Department-related Parliamentary Standing Committee. The PAC is empowered to call any person in connection to its investigations.
    • Its recommendations are binding on the government.
    • While other Department Related Standing Committees can adopt reports with dissent notes by some members, the PAC must adopt all reports by consensus. It helps to maintain neutrality.

Functions of Public Accounts Committee

• Examining Government Expenditures: The PAC looks at the government’s expenditures, including how money granted by Parliament was spent. 
• Scrutinizing Financial Transactions: The PAC examines the government’s financial transactions and compares actual expenditures to those sanctioned by Parliament. 
• Reviewing CAG Reports: The PAC reviews the Comptroller and Auditor General of India’s (CAG) reports on the government’s financial management. 
• Identifying Financial Mismanagement: The PAC looks for financial mismanagement and brings it to light. 
• Recommend Corrective Measures: The PAC recommends ways to address irregularities and improve financial accountability. 
• Report to Parliament: The PAC submits reports and recommendations to Parliament. 
• Conduct Public Opinions: The PAC holds public opinions to increase transparency and ensure the government is accountable for its financial actions.

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