Parliamentary committees are essential for the effective functioning of the Parliament of India. Given the complex, varied, and voluminous nature of parliamentary work, committees assist Parliament in scrutinizing legislative measures and other matters in detail. The Constitution of India mentions these committees but does not provide specific details about their composition, tenure, or functions. These aspects are governed by the rules of the two Houses of Parliament.
A parliamentary committee is defined by the following characteristics:
- Appointment or Election: It is appointed or elected by the House or nominated by the Speaker (Lok Sabha) or Chairman (Rajya Sabha).
- Direction: It works under the direction of the Speaker or Chairman.
- Reporting: It presents its report to the House or to the Speaker/Chairman.
- Secretariat: It has a secretariat provided by the Lok Sabha or Rajya Sabha.
Consultative committees consisting of members of Parliament do not qualify as parliamentary committees since they do not meet all four of the above conditions.
Financial Committees
Public Accounts Committee
Establishment:
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- First set up in 1921 under the Government of India Act of 1919.
- Consists of 22 members (15 from Lok Sabha, 7 from Rajya Sabha).
- Members are elected annually by Parliament through proportional representation using a single transferable vote.
- Members serve a one-year term.
- A minister cannot be elected as a member.
- The chairman, appointed by the Speaker from its members, is usually from the opposition since 1967.
Functions:
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- Examine annual audit reports of the Comptroller and Auditor General of India (CAG) on appropriation accounts, finance accounts, and public undertakings.
- Scrutinize public expenditure for legality, economy, prudence, wisdom, and propriety.
- Examine appropriation accounts: Ensure expenditure conforms to the sanctioned amount, authority, and rules.
- Review accounts of state corporations and autonomous bodies audited by the CAG.
- Examine excess expenditure beyond the amount granted by the Lok Sabha.
- Assistance:
- The CAG acts as a guide and advisor to the committee.
Limitations:
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- Not concerned with broader policy questions.
- Conducts post-mortem examinations of accounts.
- Cannot intervene in day-to-day administration.
- Recommendations are advisory, not binding.
- Lacks power to disallow expenditures.
- Cannot issue orders; Parliament takes final decisions.
Estimates Committee
Origin:
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- Traces back to the standing financial committee of 1921.
- First constituted in 1950 post-independence on the recommendation of Finance Minister John Mathai.
- Initially had 25 members; increased to 30 in 1956.
- Comprises only Lok Sabha members, elected annually by proportional representation.
Functions:
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- Examine budget estimates: Suggest economies in public expenditure.
- Report on economies and efficiencies: Recommend administrative reforms.
- Evaluate money allocation: Ensure expenditure aligns with underlying policy.
- Suggest presentation forms: Improve how estimates are presented to Parliament.
Exclusions:
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- Does not cover public undertakings allotted to the Committee on Public Undertakings.
- Recommendations are advisory, not binding.
- Examines only selected ministries and departments each year.
- Lacks expert assistance from the CAG.
- Work is retrospective in nature (post-mortem).
Committee on Public Undertakings
Creation:
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- Established in 1964 on the recommendation of the Krishna Menon Committee.
- Originally had 15 members; increased to 22 in 1974 (15 from Lok Sabha, 7 from Rajya Sabha).
- Members elected annually by proportional representation.
- Members serve a one-year term.
- A minister cannot be elected as a member.
- Chairman is appointed by the Speaker from Lok Sabha members.
Functions:
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- Examine reports and accounts of public undertakings.
- Review CAG reports on public undertakings.
- Assess management practices: Ensure they align with sound business principles and prudent commercial practices.
- Perform functions: Related to public undertakings, as allotted by the Speaker.
Exclusions:
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- Does not investigate major government policies, day-to-day administration, or matters under specific statutes governing public undertakings.
Limitations:
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- Can examine only 10-12 public undertakings annually.
- Work is retrospective (post-mortem).
- Lacks technical expertise.
- Recommendations are advisory, not binding.
Q. Write short notes on functions and duties of the following committees:
- Estimates committtees
- Public Accounts Committee
| Introduction | Parliamentary committees in India play a crucial role in ensuring transparency, accountability, and efficiency in government operations. Two key committees in this regard are the Estimates Committee and the Public Accounts Committee. These committees scrutinize government expenditures, suggest improvements, and ensure that public funds are utilized effectively and legally. |
| Body | Estimates Committee
The Estimates Committee has 30 members, all from Lok Sabha, and is chaired by a member of the ruling party or coalition. As of July 2024, Dr. Sanjay Jaiswal of the Bharatiya Janata Party is the chairman. Functions and Duties: 1. Economies and Improvements: o The Estimates Committee examines where economies can be made and improvements in organization, efficiency, or administrative reform can be introduced. This is done in a manner consistent with the policy underlying the estimates. o Example: Reviewing the budget of a ministry to suggest ways to reduce unnecessary expenditures. 2. Alternative Policies: o It suggests alternative policies aimed at bringing about efficiency and economy in administration. o Example: Proposing new methods of resource allocation to improve service delivery. 3. Expenditure Analysis: o The committee examines whether the money allocated is well utilized within the policy limits implied in the estimates. o Example: Evaluating a government scheme to ensure funds are spent on intended purposes. 4. Presentation of Estimates: o It recommends the form in which estimates should be presented to Parliament, ensuring clarity and comprehensibility. o Example: Suggesting a more detailed breakdown of expenses in the budget documents. Exclusions: · The committee does not examine matters related to public undertakings, as these are handled by the Committee on Public Undertakings. Public Accounts Committee The PAC has 22 members, including 15 from Lok Sabha and 7 from Rajya Sabha, and is chaired by a member of the opposition party from Lok Sabha. As of July 2024, Adhir Ranjan Chowdhury is the chairman. Functions and Duties:
o The Public Accounts Committee examines the statement of accounts showing the appropriation of sums granted by Parliament for government expenditure. o Example: Reviewing the annual financial accounts of the Government of India.
o Scrutinizes the annual finance accounts to ensure compliance and accuracy. o Example: Verifying that all expenditures are properly documented and accounted for.
o Reviews reports from the Comptroller and Auditor General (CAG) of India to ensure that expenditures conform to the authority governing them. o Example: Examining CAG reports on discrepancies in government spending.
o Ensures that the money disbursed is legally available for and applicable to the intended service or purpose. o Example: Checking if funds allocated for health services are not diverted to other uses.
o Checks if re-appropriations are made according to the provisions under the rules framed by competent authorities. o Example: Ensuring that funds transferred between departments adhere to legal guidelines. Additional Duties:
o Examines the accounts showing income and expenditure, balance sheets, and profit and loss statements of state corporations and trading schemes. o Example: Reviewing the financial performance of public sector undertakings.
o Examines the accounts of autonomous and semi-autonomous bodies audited by the CAG. o Example: Evaluating the financial health of bodies like the Indian Council of Agricultural Research.
o Considers CAG reports on special audits required by the President, including audits of receipts or stores and stocks. o Example: Investigating irregularities in the procurement process of a government department. |
| Conclusion | The Estimates Committee and the Public Accounts Committee are instrumental in ensuring that public funds are used efficiently, economically, and legally. By scrutinizing expenditures, suggesting improvements, and reviewing financial accounts, these committees uphold the principles of transparency and accountability in government operations. Their work ensures that taxpayers’ money is utilized effectively for the intended purposes, contributing to better governance and public trust. |