Parliamentary Committee for Public Accounts
Strengthening the Public Accounts Committee in India
The Public Accounts Committee (PAC) of India, established in 1921 under the Government of India Act of 1919, plays a significant role in upholding the financial accountability of the executive. As one of the major financial committees, the PAC scrutinizes government expenditure after budget approval, focusing on excess spending, irregularities, and the effectiveness of public spending.
The PAC's key roles include financial oversight, scrutiny and recommendations, a follow-up mechanism, project and policy review, and contributing to preventing financial mismanagement and promoting fiscal discipline. Through its oversight, the PAC has achieved significant success in enhancing transparency in government expenditure.
However, the PAC also faces limitations. It cannot examine Public Sector Undertakings (PSUs), and its role is reactive rather than proactive. Moreover, PAC recommendations are not binding on the government, and their effectiveness depends on the government's willingness to implement them. The quality of the PAC's work also depends heavily on the integrity and thoroughness of Comptroller and Auditor General (CAG) reports.
To enhance its role, the PAC should focus on strengthening follow-up mechanisms, improving coordination with other parliamentary financial committees, using modern data analytics and audit tools, enhancing transparency, expanding jurisdiction, and collaborating more closely to indirectly scrutinize PSU spending.
The PAC has an average of 45% of its recommendations accepted, with some cases reaching up to 90%. The committee, often referred to as the "mother of all parliamentary committees," has a crucial role in maintaining the integrity of government spending and serving as the conscience keeper of the government.
Notable achievements of the PAC include its report on the Commonwealth Games in 2010, which exposed corruption and misuse of public money. The Public Accounts Committees Conference 2015 recommended for the CAG audit of Public-Private Partnerships (PPP).
The work of the PAC is post-mortem in nature, and politicization, such as during the 2G scam, has been observed. The number of sittings for the committee has been reduced, and currently, the PAC has no jurisdiction on PPP.
Despite these challenges, the PAC remains a crucial watchdog over government expenditure, reinforcing the control of the public purse by ensuring funds are spent appropriately and effectively. By expanding its authority, improving implementation of its recommendations, and leveraging modern tools, the PAC can further strengthen public financial governance in India.
In light of the PAC's current role in financial oversight and achieving transparency, exploring collaborations with experts in fields like science and business, particularly finance, could offer valuable insights and practices for strengthening follow-up mechanisms and utilizing modern data analytics. This collaboration could potentially lead to more efficient audit processes and improved financial governance.
Furthermore, in regards to the PAC's limited jurisdiction over Public Sector Undertakings (PSUs), investigating alternative legislative avenues or public-private partnerships (PPP) that allow for scrutiny of PSU spending could help address current limitations, thereby promoting a more comprehensive approach to financial accountability in India.
