Previous Year Question
Consider the following statements:
The Parliamentary Committee on Public Accounts
consists of not more than 25 members of the Lok Sabha.
scrutinises appropriation accounts and finance accounts of the Government.
examines the reports of the Comptroller and Auditor General of India.
Which of the statements given above is/are correct?
1 only
2 and 3 only
3 only
1, 2 and 3
Correct Answer: B
Detailed Solution
Statement 1 is incorrect. The Public Accounts Committee consists of not more than 22 members, not 25 members of the Lok Sabha.
Of these 22 members:
15 are elected from the Lok Sabha.
7 are elected from the Rajya Sabha.
Members are elected annually through proportional representation by means of the single transferable vote. This broadly provides representation to political parties in proportion to their strength in the Houses.
Statement 2 is correct. The Public Accounts Committee scrutinises the Appropriation Accounts and Finance Accounts of the Union Government.
Appropriation Accounts show the actual expenditure against the amount authorised by Parliament for a particular service or purpose. The Committee examines whether:
The money spent was legally available for expenditure.
The money was applied to the purpose for which Parliament had authorised it.
Expenditure remained within the amount sanctioned by the competent authority.
Reappropriation was made according to the prescribed rules.
Expenditure exceeding a grant was presented to Parliament for regularisation.
Finance Accounts provide a comprehensive record of the Government’s receipts, expenditure, assets and liabilities during a financial year.
Statement 3 is correct. The Public Accounts Committee examines the reports submitted to Parliament by the Comptroller and Auditor General of India.
On the basis of CAG reports, the Committee may examine cases involving financial irregularities, waste, negligence, corruption, violation of rules and inefficient use of public money. The CAG provides technical and audit-related assistance to the Committee.
Composition and functioning
The term of the Committee is one year.
A Minister cannot be elected as its member.
If a member is subsequently appointed as a Minister, that person ceases to be a member of the Committee.
Its Chairperson is appointed by the Speaker of the Lok Sabha.
Since 1967, the Chairperson has conventionally been appointed from among the members of the Opposition.
Its reports and recommendations are advisory; the Committee cannot itself impose an administrative penalty.
Nature of examination
The Public Accounts Committee principally examines expenditure after it has been incurred. Its scrutiny is therefore often described as a post-expenditure examination. It ordinarily does not question the wisdom of a policy approved by Parliament. Instead, it examines whether money was spent legally, prudently and economically while implementing that policy.