About:
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- It is constituted in 1950 on the recommendation of John Mathai.
- It is a financial committee to ensure financial accountability of the executive.
- 30 members, all from Lok Sabha- also known as mini-Lok Sabha.
- The chairman is invariably from the ruling party.
Role:
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- It examines the budget estimates presented in the parliament.
- Ensure effective utilization of public money.
- Ensure efficiency, economy and effectiveness.
- It suggests ‘economies’ in public expenditure.
Positive working:
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- Scrutiny of Budget Estimates
- Review Efficiency in Expenditure
- Examination of Ongoing Schemes:
- For example- In 2021-22, its report on underutilization of funds under MGNREGS
- Recommending improvements
- For example-In 1997, its report on Public Distribution System (PDS), helped streamlining the system to reduce leakages and improve targeting. It resulted in introduction of Targeted Public Distribution System (TPDS).
- For example-It recommended for separation of audit from accounts and performance budgeting.
- Encouraging Transparent Governance
- For example– In 2007, its review of defense spending highlighted the need for better financial management and accountability in procurement processes.
Weakness:
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- Scrutiny is post-mortem in nature
- Recommendations are advisory and not binding.
- Lacks the assistance of CAG, unlike PAC.
- Instances of delayed process of scrutiny of schemes
- Limited number of grants estimated in a year.
Way forward:
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- Independent specialized secretariat.
- Long and fixed tenure of members.
- Committee as part and parcel of parliamentary process.
