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THE CONTEXT: The recent shift in India’s political landscape, with the BJP now leading a coalition government, presents a unique opportunity to enhance parliamentary oversight of the executive branch. The proactive stance of the newly constituted Public Accounts Committee (PAC), which has selected 161 subjects for deliberation, exemplifies this potential for renewed accountability.
THE PARLIAMENTARY COMMITTEES: A parliamentary committee comprises Members of Parliament (MPs) elected, appointed, or nominated by the Speaker or Chairman. These committees operate under the Speaker of Lok Sabha or Chairman of Rajya Sabha and present their findings and recommendations to the respective houses. The Parliamentary committees draw their authority from the constitution.
- Article 105: Powers, privileges, etc., of the houses of Parliament and the members and committees thereof.
- Article 118: Each House of Parliament may make rules for regulations, subject to the provisions of this constitution, its procedure, and the conduct of its business.
TYPES OF PARLIAMENTARY COMMITTEES:
- Standing Committees: These are permanent committees that are constituted regularly and work continuously. The main types of standing committees are:
- Financial Committees: These include the Public Accounts Committee, Estimates Committee, and Committee on Public Undertakings. They scrutinize government expenditure and financial matters.
- Departmentally Related Standing Committees (DRSCs): There are 24 DRSCs that oversee specific ministries/departments. They examine bills, demands for grants, and policies of the ministries.
- Committees to Inquire: Examples include Committee on Petitions, Committee of Privileges, and Committee on Ethics.
- Committees to Scrutinize and Control: These include Committee on Subordinate Legislation, Committee on Government Assurances, etc.
- Committees Related to Day-to-Day Business: Like Business Advisory Committee, Rules Committee, etc.
- House-Keeping Committees: These include the General Purposes Committee, House Committee, Library Committee, etc.
- Ad Hoc Committees: These are temporary committees formed for a specific purpose and cease to exist once their task is completed.
- Select Committees: Formed to scrutinize specific bills.
- Joint Parliamentary Committees (JPCs): Established to investigate particular issues or irregularities.
PUBLIC ACCOUNTS COMMITTEE: The Public Accounts Committee (PAC) is a crucial parliamentary committee in India that ensures financial accountability and transparency in government operations. It is a type of Standing Committee constituted annually under Rule 308 of the Rules of Procedure and Conduct of Business in the Lok Sabha.
COMPOSITION
- Members: The committee consists of 22 members, 15 of whom are elected by the Lok Sabha and not more than seven from the Rajya Sabha. Members are elected annually based on proportional representation by means of a single transferable vote.
- Chairperson: The Chairperson is appointed by the Speaker of the Lok Sabha and is traditionally a member of the opposition party to ensure impartiality. Ministers are not eligible to be members of the PAC.
FUNCTIONS:
- Examination of Appropriation Accounts: The PAC examines the central government’s appropriation and finance accounts, ensuring that expenditures are within the scope of the Parliament-approved grants.
- Scrutiny of CAG Reports: It scrutinizes the audit reports submitted by India’s Comptroller and Auditor General (CAG), which detail how government funds have been utilized.
- Evaluation of Financial Regularity: The committee checks whether the expenditures conform to the authority that governs them and that financial propriety and economy in expenditure are observed.
- Review of Public Sector Undertakings: In states without a separate Committee on Public Undertakings, the PAC also examines the accounts and audits of public sector enterprises.
- Recommendations and Reports: After detailed examination, the PAC prepares reports with its findings and recommendations, which are presented to Parliament.
ISSUES AND CHALLENGES FACED BY PAC IN RECENT TIMES:
- Lack of enforcement power: The PAC’s recommendations are advisory in nature and not binding on the government. On average, only about 80% of PAC recommendations are accepted by the government each year. The PAC has no mechanism to enforce corrective measures even when it identifies irregularities in public expenditure.
- Examining past expenditures only: The PAC examines government expenditures already incurred. It has no power to limit or control ongoing or future expenses. This limits its ability to prevent financial irregularities in real time.
- Limited mandate: The PAC cannot examine or question broader government policies. It is restricted to reviewing the financial propriety and economy of expenditure within existing policies.
- Lack of technical expertise: PAC members are often generalists without specialized financial/accounting knowledge to analyze complex CAG reports. The PAC report on the 2010 Commonwealth Games, submitted in 2016-17, highlighted issues like delays and opaque appointments but lacked in-depth financial scrutiny.
- Delays in reporting: There are often significant delays between the actual expenditure, the CAG audit, and the PAC examination. For example, the PAC report on the 2010 Commonwealth Games was submitted 6-7 years after the event.
- Workload challenges: The number of PAC reports has increased significantly in recent years—from 11 in the 12th Lok Sabha to 187 in the 16th Lok Sabha. This increasing workload strains the committee’s capacity.
- Political considerations: While the PAC chair is traditionally from the opposition, the majority of members are from the ruling party/coalition. This can potentially impact the committee’s ability to examine government expenditure critically.
- Limited public engagement: PAC proceedings are not open to the press or public, limiting transparency.
- Inadequate follow-up: While sub-committees are formed to examine the implementation of recommendations, there is no robust mechanism to ensure compliance.
- Resource constraints: The PAC often lacks adequate professional staff and research support to conduct in-depth examinations of complex financial matters.
EVOLVING POLITICAL DYNAMICS AND THE RENEWED ROLE OF THE PUBLIC ACCOUNTS COMMITTEE:
- Political Context: Over the past decade, the central government, led by the BJP with a comfortable majority, has been criticized for evading meaningful parliamentary accountability. However, the current political scenario has shifted as the BJP now leads a coalition dependent on allies, and the opposition has gained strength. This change presents an opportunity to renew parliamentary oversight over the executive’s functioning.
- Public Accounts Committee (PAC): The newly constituted PAC, chaired by Congress MP K.C. Venugopal, has proactively selected 161 subjects for deliberation, primarily based on reports from the Comptroller and Auditor General (CAG). The committee has also chosen five subjects suo motu, including reforms in the banking and insurance sectors, welfare schemes, energy sector policy measures, regulatory body performance reviews, and regulating fees and tariffs on public infrastructure.
- Parliamentary Oversight: The constitutional framework mandates that Parliament controls the country’s finances, requiring legislative approval for taxes and government expenditures. The PAC plays a crucial role in examining financial audits conducted by the CAG. Despite its assertive stance, the ruling coalition’s majority could challenge the PAC’s effectiveness.
- Allegations of Crony Capitalism: There have been serious allegations of crony capitalism involving government measures that favor certain economic players. The government has resisted investigating charges against SEBI Chairperson Madhabi P. Buch and the Adani Group. These issues underscore the need for robust parliamentary oversight to ensure accountability.
- Challenges and Opportunities: While the PAC’s proactive approach is positive, the ruling coalition’s majority might undermine its efforts. Along with other standing committees, the committee is urged to assert its role as a key instrument of parliamentary authority.
THE WAY FORWARD:
- Increasing Investigative Powers: Granting the PAC suo motu powers to initiate investigations into significant public matters, as seen with its current focus on banking reforms and regulatory body performance, can enhance its effectiveness.
- Aligning Committees with Ministries: Restructuring committees to correspond directly with government ministries would allow for more focused and specialized oversight. This approach is consistent with the recommendations of the Second Administrative Reforms Commission.
- Enhancing Committee Powers: Committees should have the authority to summon ministers and senior officials for questioning.
- Implementing Committee Recommendations: Establishing a mechanism for the government to respond to and enforce committee recommendations within a specified timeframe would enhance accountability.
- Reinstating Question Hour: Regular and uninterrupted Question Hour sessions are vital for holding the government accountable. Historical data shows a decline in its effectiveness, with only 11% of questions answered orally in the 2014 budget session.
- Increasing Debates and Discussions: Promoting more Short-Duration and Half-an-Hour Discussions in Parliament can address urgent public issues, as noted in the decline of such discussions over recent Lok Sabhas.
- Implementing a “Parliamentary Oversight Cycle”: Adopting a structured oversight approach, as recommended by international best practices, can improve the effectiveness of parliamentary scrutiny.
- Parliamentary Oversight of Regulators: The Second Administrative Reforms Commission recommends establishing a formal mechanism for parliamentary oversight of regulatory bodies like RBI and TRAI.
THE CONCLUSION:
While the PAC’s efforts to scrutinize critical areas such as banking, insurance, and welfare schemes are promising, the committee’s effectiveness may be challenged by the ruling coalition’s majority. Nonetheless, this moment offers a critical chance for parliamentary bodies to reaffirm their role in ensuring government accountability and transparency.
UPSC PAST YEAR QUESTIONS:
Q.1) Why do you think the Committees are considered to be useful for parliamentary work? Discuss, in this context, the role of the Estimates Committee. (2018)
Q.2) Do Department-related Parliamentary Standing Committees keep the administration on its toes and inspire reverence for parliamentary control? Evaluate the working of such Committees with suitable examples. (2020)
MAINS PRACTICE QUESTION:
Q.1) Discuss the role of the Public Accounts Committee (PAC) in enhancing parliamentary oversight over the executive in India.
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