Question

Which committee of the Parliament has the legitimate authority to scrutinise CAG reports?

• A. Public Undertaking Committee
• B. Departmental Standing Committee
• C. Public Accounts Committee
• D. Privilege Committee

Answer 1

Answer:

C. Public Accounts Committee

Public Accounts Committee (PAC)

• The Public Accounts Committee (PAC) is the parliamentary committee exclusively responsible for scrutinising the audit reports submitted by the Comptroller and Auditor General of India (CAG) to the President.
• The CAG submits three audit reports to the President: Audit Report on Appropriation Accounts, Audit Report on Finance Accounts, and Audit Report on Public Undertakings. The PAC examines all these reports.
• Historical Background: The PAC was first set up in 1921 under the provisions of the Government of India Act of 1919.
• Composition: It consists of 22 members: 15 elected by the Lok Sabha and 7 elected by the Rajya Sabha. The term of office for these members is one year.
• Leadership: Since 1967, a convention has developed whereby the Chairman of the committee is selected from the Opposition. Previously, a ruling party member was appointed as the chairman.
• Functionality: The committee acts as a watchdog over the government's expenditure. It examines whether the money granted by Parliament has been spent by the government within the scope of the demand and verifies the legality and propriety of such expenditure.
• Role of CAG: The CAG acts as the 'guide, friend, and philosopher' to the Public Accounts Committee. The CAG assists the committee during its examination of these reports, providing necessary technical expertise and insights.
• Limitations: The PAC cannot intervene in matters of day-to-day administration or policy decisions; its function is primarily ex-post facto, meaning it reviews expenditures that have already occurred.