Public Accounts Committee

Public Accounts Committee (PAC) is one of the standing parliamentary committees, which
was first established in 1921 under the Government of India Act 1919 provisions. This
committee examines the manners and results of spending the public funds.

Members

Public Accounts Committee has 22 members of which 15 are from Lok Sabha while 7 from
Rajya Sabha. The members are elected by members of Parliament amongst themselves via a
system of proportional representation by means of single transferable vote; so that all parties
get due representation in it. Members are elected for a period of one year. A minister cannot be
a member of PAC.

Chairman

Chairman of PAC is appointed by Speaker from its members. The chairman used to be of
ruling party till mid 1960s, however, now the chairman of PAC is from opposition by
convention.

Functions

PAC examines the three audit reports of CAG submitted to President viz. audit report on
appropriation accounts, audit report on finance accounts and audit report on public
undertakings.

It examines the appropriation accounts and the finance accounts of the Union
government and any other accounts laid before the Lok Sabha. While doing this
examination, it tries to ensure that money disbursed to various ministries was used for
the purpose for which it was given; and this money was used as per rules and
regulations.

It also examines the accounts of the public service corporations {except those public
undertakings which have been allotted to committee on public undertakings}, and other
such bodies whose accounts are audited by CAG.

CAG assists PAC in its work and there is a close working relationship between CAG and PAC to
secure the accountability of executive in the field of financial administration. This is the reason
that CAG is called Friend, Philosopher and Guide of PAC.

Similarities between PAC and Estimates Committee

Both are financial committees and both are standing committees of parliament
 Both find their origin in British Era

Members of both are elected and chairmen of both are nominated by speaker.

A minister cannot be member or chairman of any of them.

Differences between PAC and Estimates Committee

While PAC has 22 members, Estimates Committee has 30 members.

While PAC members belong to both houses of parliament, Estimates Committee

members belong to only Lok Sabha

While PAC chairman is from opposition, Estimates Committee Chairman is always from
ruling party or dispensation

While Estimates committee scrutinizes the Estimates, PAC scrutinizes the

appropriation and manner of spending. Thus, work of Estimates Committee is ex-ante
analysis while that of PAC is ex post facto analysis.