- Why in news
- On 3 November 2026, Lok Sabha Speaker Om Birla inaugurated the Conference of Chairpersons of Public Accounts Committees of Parliament and State Legislatures in Thiruvananthapuram. He urged PACs to check outcomes of spending and to clear old audit observations quickly.
- What it is
- The Public Accounts Committee is a parliamentary financial committee that examines the appropriation accounts and the CAG's audit reports. It checks that money was spent as Parliament authorised. By convention, a Member of the Opposition chairs it.
- Opposition chair
- By convention, a Member of the Opposition is appointed Chairperson of the PAC. The Speaker called this a sign of the maturity of Indian parliamentary democracy.
- Link with the CAG
- Examining CAG audit findings, scrutinising Action Taken Reports and following up on recommendations are core PAC work.
- Pending audit observations
- The Speaker flagged audit observations that stay unresolved for 10 to 20 years and asked for a time-bound action plan.
- Proposal from PAC Chairman
- PAC Chairman K.C. Venugopal proposed that at least one PAC report, with the government's Action Taken on it, be discussed in every Parliament session.
- Origin and composition
- The PAC was first set up in 1921 under the Government of India Act 1919 reforms. It has 22 members: 15 from Lok Sabha and 7 from Rajya Sabha. A Minister cannot be a member.
- Conference theme
- The two-day conference will discuss audit, accountability and good governance and the evolving role of the PAC.
- Role of PACs
- PACs examine public expenditure and check that public funds are used in line with legislative intent.
- Membership
- The PAC has 22 members: 15 from Lok Sabha and 7 from Rajya Sabha. It is elected every year by proportional representation through single transferable vote.
- Chair and Minister bar
- The Chair is appointed by the Lok Sabha Speaker from among its members. Since 1967 the Chair has gone to a member of the opposition. A Minister cannot be a member.
Don’t confuse with PAC vs Estimates Committee: The PAC examines audit reports and accounts of money already spent. The Estimates Committee, with members only from Lok Sabha, examines estimates and suggests economies.
Don’t confuse with PAC vs CAG: The CAG audits government accounts and is a constitutional authority. The PAC is a parliamentary committee that examines the CAG's reports.
Don’t confuse with PAC vs Committee on Public Undertakings: The PAC covers government accounts and departments. The Committee on Public Undertakings examines the accounts and reports of public sector undertakings.
Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.
Why it matters
- PAC scrutiny keeps the Executive answerable to Parliament for how public money is spent.
- Opposition chairmanship and cross-party membership give the committee credibility.
- PACs give Parliament a way to check executive spending after it is incurred, so funds are used as authorised.
- Sharing practice across Parliament and State legislatures can improve audit follow-up and financial discipline.
Problems
- Audit observations stay pending for decades, so accountability remains on paper.
- PAC recommendations are advisory and the government is not bound to accept them.
- PAC recommendations are advisory, and executive action on them can be slow.
- PACs examine spending after the event, and CAG reports often come with long delays.
Way forward
- Set a time-bound action plan for follow-up on audit observations, with Union and State coordination.
- Use data analytics and site visits to assess outcomes, and discuss PAC reports in every session.
- Set time limits for ministries to act on PAC recommendations and report back.
- Give PACs stronger technical support, and use the CAG's reports in a timely way.
Put in your answer
Outcome-based oversight: The Speaker said PACs should check whether spending delivered its intended results, including by visiting infrastructure project sites.
Technology in oversight: The Speaker said AI and data analytics can help detect irregularities and monitor audit observations.
- 2017Mains GS2 · Q5Discuss the role of the Public Accounts Committee in establishing government accountability.
- 2024Mains GS2 · Q4Comment on CAG's duty to ensure propriety, not just legality, of expenditure
- 2023Mains GS2 · Q16Explain parliamentary committee structure and how financial committees institutionalised Parliament.
- 2012Prelims Q56Which reports must the President lay before Parliament, including any PAC report?
- 2012Prelims Q51Importance of CAG beyond efficiency, including PAC discussion of CAG reports?
- 2013Prelims Q51Which statements about PAC composition, scrutiny of accounts, and CAG reports are correct?
- 2004Prelims Q1Which statements on parliamentary control of public finance accounts are correct
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Standing parliamentary committee already on file; this conference adds a Speaker's exhortation but no new provision.
Worth revising until Prelims 2028: most news questions come within two years of the event.