Public Accounts Committee (PAC): Indian Polity Notes for UPSC, SSC & PCS

Welcome, students! If you are preparing for UPSC, State PCS, SSC (CGL, CHSL), or Railway exams, Parliamentary Committees is a must-read topic. Among them, the Public Accounts Committee (PAC) is the most frequently asked in exams.

Let’s understand this topic in simple language so you never lose a mark!

1. Introduction: What is the Public Accounts Committee?

The Public Accounts Committee (PAC) is one of the most important Standing Committees (permanent committees) of the Indian Parliament. Its main job is to check the government’s expenses and ensure that the taxpayers’ money is spent legally, efficiently, and for the intended purpose.

Think of it as the “financial watchdog” of the Parliament!

2. History and Origin

• First Introduced: The PAC was established in 1921.
• Under Which Act? It was formed under the provisions of the Government of India Act, 1919 (also known as the Montagu-Chelmsford Reforms).
• Significance: It is the oldest Parliamentary Committee in India.

3. Composition (Members of PAC)

For competitive exams, the number of members is a very popular question.

• Total Members: 22
• From Lok Sabha: 15 members
• From Rajya Sabha: 7 members
• Important Rule: A Minister cannot be elected as a member of the PAC. If a sitting member becomes a Minister, they must resign from the committee.

4. Election, Term, and Chairman

How are they elected?

• Members are elected by the Parliament every year from amongst its members.
• Method: Principle of Proportional Representation by means of a Single Transferable Vote. (This ensures all parties get fair representation).

Term of Office

• The term of the members is exactly 1 year.

The Chairman of PAC

• Appointed By: The Speaker of the Lok Sabha appoints the Chairman from among the Lok Sabha members of the committee.
• Important Convention: Before 1967, the Chairman belonged to the ruling party. However, since 1967-68, a convention (unwritten rule) has developed that the Chairman of the PAC must be from the Opposition Party.

5. Functions of the PAC: What does it do?

The PAC does not check the accounts on its own. It relies on the reports of the CAG (Comptroller and Auditor General of India – Article 148). The CAG is often called the “Friend, Philosopher, and Guide” of the PAC.

The PAC examines three main audit reports submitted by the CAG to the President:

1. Audit Report on Appropriation Accounts (matching expenses with the budget).
2. Audit Report on Finance Accounts (revenue and tax collections).
3. Audit Report on Public Undertakings (PSUs).

6. Limitations of the PAC

While it is powerful, it has certain limits:

• Post-Mortem Work: It checks expenses after the money has already been spent.
• Advisory Body: Its recommendations are advisory, not legally binding on the government.
• No Interference: It cannot interfere in day-to-day administration or government policy.

🚨 Common Exam Traps & Confusing Points (Beware!)

• Trap 1: Is the Chairman of PAC elected by members? Fact: No! The Chairman is appointed by the Speaker of the Lok Sabha.
• Trap 2: Does the PAC have members from both houses?Fact: Yes (15 LS + 7 RS). Do not confuse it with the Estimates Committee, which has 30 members only from the Lok Sabha.
• Trap 3: Can a Cabinet Minister be a member?Fact: Absolutely NOT. No minister can be a part of the PAC.

📌 Quick Revision Bullet Points

• Origin: 1921 (GoI Act, 1919).
• Total Strength: 22 (15 LS + 7 RS).
• Minister allowed? No.
• Term: 1 Year.
• Chairman Appointed By: Speaker of Lok Sabha.
• Chairman belongs to: Opposition Party (since 1967).
• Guide/Friend of PAC: CAG (Comptroller and Auditor General).

📝 Practice Time: Previous Year Exam Style MCQs

Q1. The Public Accounts Committee of the Indian Parliament consists of how many members?

A) 15

B) 22

C) 30

D) 45

• Answer: B) 22
• Explanation: The PAC consists of 22 members (15 from Lok Sabha and 7 from Rajya Sabha).

Q2. Who appoints the Chairman of the Public Accounts Committee?

A) President of India

B) Prime Minister

C) Speaker of Lok Sabha

D) Chairman of Rajya Sabha

• Answer: C) Speaker of Lok Sabha
• Explanation: The Speaker of the Lok Sabha appoints the Chairman from among the Lok Sabha members of the committee.

Q3. Which of the following is called the “Friend, Philosopher, and Guide” of the Public Accounts Committee?

A) Finance Minister

B) Attorney General of India

C) Comptroller and Auditor General (CAG)

D) Finance Secretary

• Answer: C) Comptroller and Auditor General (CAG)
• Explanation: The PAC examines government accounts based on the audit reports provided by the CAG. Hence, CAG assists the PAC closely.

Q4. The tradition of appointing the Chairman of the PAC from the opposition party started in which year?

A) 1950

B) 1967

C) 1975

D) 1991

• Answer: B) 1967
• Explanation: From 1950 to 1967, the Chairman was from the ruling party. The convention to appoint from the opposition started in 1967-68.

Q5. Consider the following statements about PAC:

1. A minister cannot be a member of the PAC.
2. Its members are elected for a term of two years.Which of the statements given above is/are correct?A) 1 onlyB) 2 onlyC) Both 1 and 2D) Neither 1 nor 2

• Answer: A) 1 only
• Explanation: Statement 1 is correct. Statement 2 is incorrect because the term of office for PAC members is exactly 1 year, not two years.

📖 Short Revision Summary

The Public Accounts Committee (1921) is a 22-member (15 LS + 7 RS) financial watchdog of the Parliament. Elected for 1 year, its members do not include any Ministers. Led by an Opposition leader (appointed by the Speaker), it scrutinizes government spending using the reports of the CAG, doing a “post-mortem” of public finances.

Would you like me to generate a similar detailed guide for another important parliamentary committee, like the Estimates Committee or the Committee on Public Undertakings?