Interface with Legislation
Legislation Committees in relation to the CAG (Comptroller and Auditor General of India) refers to the Public Accounts Committee (PAC) which is a standing committee of Parliament created under Government of India Act, 1919 coming into existence in 1921. This committee along with the Estimates committee (EC) and Committee on Public Undertakings (COPU) are the three financial standing committees of the Parliament of India.
(i) The particulars of its organization, functions and duties
The Committee on Public Accounts is constituted by Parliament each year for examination of accounts showing the appropriation of sums granted by Parliament for expenditure of Government of India, the annual Finance Accounts of Government of India, and such other accounts laid before Parliament as the Committee may deem fit such as accounts of autonomous and semi-autonomous bodies (except those of Public Undertakings and Government Companies which come under the purview of the Committee on Public Undertakings).
The Committee on Public Accounts is the oldest Parliamentary Committee and was first constituted in 1921. The Committee consists of 22 Members, 15 Members are elected by Lok Sabha and 7 Members of the Rajya Sabha are associated with it. The Speaker is empowered to appoint the Chairman of the Committee from amongst its Members.
Functions of the Committee
The Committee on Public Accounts scrutinizes the Appropriation Accounts of the Government of India and the reports of the Comptroller and Auditor General of India thereon. While doing so, it is the duty of the Committee to satisfy itself
that the moneys shown in the accounts as having been disbursed were legally available for, and applicable to, the service or purpose to which have been applied or charged
that the expenditure conforms to the authority which governs it; and
that every re-appropriation has been made in accordance with the provisions made in this behalf under rules framed by competent authority.
It is also the duty of the PAC :-
to examine the statement of accounts showing the income and expenditure of State Corporations, trading and manufacturing schemes, concerns and projects together with the balance sheets and statements of profit and loss accounts which the President may have required to be prepared or are prepared under the provisions of statutory rules regulating the financing of a particular corporation trading or manufacturing scheme or concern or project and the report of the C&AG thereon
to examine the statement of accounts showing the income and expenditure of autonomous and semi-autonomous bodies, the audit of which may be conducted by the C&AG of India either under the directions of the President or by a statute of Parliament; and
to consider the report of the C&AG in cases where the President may have required him to conduct an audit of any receipts and to examine the accounts of stores and stocks.
If any money has been spent on any service during a financial year in excess of the amount granted by the House for that purpose, the Committee examine with reference to the facts of each case the circumstances leading to such an excess and make such recommendations as it may deem fit.
An important function of the Committee is to ascertain that money granted by Parliament has been spent by Government within the scope of the demand. The implications of this phrase are that (i) money recorded as spent against the grant must not be more than the amount granted; (ii) the expenditure brought to account against a particular grant must be of such a nature as to warrant its record against the grant and against no others; and (iii) the grants should be spent on purposes which are set out in the detailed demand and they cannot be spent on any new service not contemplated in the demand. The functions of the Committee extend, however, beyond the formality of expenditure to its wisdom, faithfulness and economy. The Committee thus examines cases involving losses, nugatory expenditure and financial irregularities. When any case of proved negligence resulting in loss or extravagance is brought to the notice of the Committee, it calls upon the Ministry/Department concerned to explain what action, disciplinary or otherwise, it had taken to prevent a recurrence. In such a case it can also record its opinion in the form of disapproval or pass strictures against the extravagance or lack of proper control by the Ministry or Department concerned.
Another important function of the Committee is the discussion on points of financial discipline and principle. The detailed examination of questions involving principles and system is a leading and recognized function of the Committee.
The Committee is not concerned with questions of policy in the broad sense though it is within its jurisdiction to point out whether there has been extravagance or waste in carrying out that policy.
While scrutinizing the Reports of the C&AG on Revenues Receipts, the Committee examines various aspects of Government’s tax administration. The Committee, thus, examines cases involving under-assessments, tax-evasion, non-levy of duties, mis-classifications etc., identifies the loopholes in the taxation laws and procedures and makes recommendations in order to check leakage of revenue.
(ii) The powers and duties of its officers and employees
Officers and employees in charge of the Committee Secretariat provide Secretarial assistance to the Committee. The broad duties are as under:-
To prepare a list of relevant subjects based on the Audit Paragraphs/reviews from the Reports of the Comptroller and Auditor General of India and other important subjects so as to enable the Committee to consider and finalise the selection of subjects for examination during the year
To arrange to convene sittings of the Committee after seeking convenience of the Chairman or as per directions from the Chairman
Obtaining/ gathering of information including preliminary material/ brief notes on the relevant subjects from different sources including Office of C&AG, the nodal Ministry, Public Sector Undertakings, newspaper clippings, Internet, etc.
Sending intimations/agenda papers for the sittings of the Committee to the Chairman and Members of the Committee
Correspondence with concerned Ministry/Organisations on relevant matters
To study / examine the Audit paragraphs and material received from the concerned Ministry/ Public Sector Undertakings/ Organisations on relevant subjects and Annual Report, Performance Budget, etc. of the concerned Ministry, if required
To study/examine the replies to Parliamentary Questions, relevant newspaper clippings, material gathered from the Internet and other sources on the subjects under examination
To prepare Lists of Points on the relevant subjects for written replies/evidence/post-evidence purposes
To draft Original Reports on subjects selected and examined by the Committee
To arrange for consideration/ adoption, presentation, printing and circulation of such Reports
To scrutinise Action Taken Replies received from the Ministry, draft Action Taken Reports and arrange for their consideration/ adoption, presentation, printing and circulation
To arrange for putting of various Reports presented to the House, on the Internet
To prepare Action Taken Statements for the purpose of laying of the same in the Houses
To prepare Study Tour Programmes and firm up arrangements for the smooth conduct of the same in co-ordination with the concerned Ministries/Departments/Field Organisations
To process the representations received from Members/ Agencies and individuals as per existing practice; and
Day-to-day work relating to the Committee Secretariat.
(iii) The Procedure followed in the decision making process, including channels of supervision and accountability
Decision making process
Decisions of the Committee are taken by the Chairman and the Members of the Committee in accordance with Rules of Procedure and Conduct of Business in Lok Sabha/ Directions by the Speaker/ precedents.
Decisions regarding procedural matters are taken in accordance with the Rules of Procedure and Conduct of Business in Lok Sabha/ Directions by the Speaker/ Precedents by the Secretariat.
Channels of supervision
Reporting Officer/ Committee Officer/Assistant Director - Under Secretary - Director – Joint Secretary - Additional Secretary - Secretary General - Chairman - Speaker
Accountability
Each officer/employee is accountable for his/her work.
(iv) The norms set by it for the discharge of its functions
The subjects selected by the Committee are examined during the year subject to availability of time at the disposal of the Committee and completion of evidence of the concerned Ministries/Departments on these subjects. The Committee Secretariat assists the Committee in adhering to the time schedule fixed for discharging the mandated functions of the Committee. To ensure this, Routine Orders are prepared and issued allocating the works amongst the officials.
(v) The rules, regulations, instructions, manuals and records, held by it or under its control or used by its employees for discharging its functions
The following rules, manuals, etc. are referred to by the employees for discharging their official duties;-
Rules of Procedure and Conduct of Business in Lok Sabha
Directions by the Speaker, Lok Sabha
Practice and Procedure of Parliament
Manual on Directions
Manual on Rules
Practice and Procedure of Public Accounts Committee (Internal Work)
Select Document
Precedents Register
Orders/Guidelines issued by Speaker from time to time
Instructional Orders/Financial Orders issued by Administrative Branch/O&M Section from time to time
(vi) A statement of the categories of documents that are held by it or under its control
The following documents are kept by the Committee Secretariat:-
Audit Reports and Appropriation Accounts presented to the House,
Epitomes published by the Office of C&AG of India
Printed Reports of the Committee
Files/documents relating to the Reports, sittings, etc. including proceedings, minutes, etc.
Printed copies of Financial Committees – A Review.
Select Documents.
(vii) The particulars of any arrangement that exists for consultation with or representation by, the members of the public in relation to the formulation of its policy or implementation thereof
In case a need is felt to invite opinion of public on a particular subject to be examined, the Committee may invite the same before arriving at a just conclusion.
There is also a provision in the Rules for examination of non-Official witness. Whenever a non-Official makes a request to appear before the Committee or if the Committee deems it fit to summon or give an opportunity to a non-Official witness or the representative of a non-Government body, he shall be asked to submit a memorandum for circulation to the members of the PAC before he is heard by the Committee.
(viii) A statement of the boards, councils, committees and other bodies consisting of two or more persons constituted as its part or for the purpose of its advice and as to whether meetings of those boards, councils, committees and other bodies are open to the public, or the minutes of such meetings are accessible for public
The Public Accounts Committee may appoint one or more sub-Committees, each having the powers of the undivided Committee, to examine any matter that may be referred to them, and the reports of the said sub-Committees are deemed to be the reports of the whole Committee, if they are approved at a sitting of the whole Committee.
The Chairman of the Committee appoints the Chairman of the sub-Committee.
Working Groups are also appointed by the Committee for carrying out detailed examination of the Audit Reports and relevant Appropriation Accounts or any other matter that may be referred to them. These Working Groups are appointed according to the subjects taken up for examination by the Committee so that the members are able to have a specialized knowledge of the subjects and the examination of the relevant Appropriation Accounts and Audit Reports thereon by the Committee is made more purposive. While constituting the Working Groups the Chairman of the Committee also appoints the Convener/Alternate convener.
Besides, an Action Taken sub-Committee may be constituted by the Chairman with all the Conveners of the Working Groups as its members and the Chairman himself as the head of sub-Committee to scrutinize Action Taken Notes submitted by Government on the recommendations contained in the Reports of the Public Accounts Committee and also considers the draft Action Taken Reports before these are circulated to the main Committee for adoption.
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Committee on Public Undertakings
Constitution
The Committee on Public Undertakings is a Parliamentary Committee consisting of 22 Members, fifteen of whom are elected by the Lok Sabha every year from amongst its Members according to the principle of proportional representation by means of a single transferable vote and seven Members to be nominated by Rajya Sabha for being associated with the Committee. The Chairperson is appointed by the Speaker from amongst the Members of the Committee. A Minister is not eligible to become a Member of the Committee. If a Member after his election to the Committee is appointed a Minister, he ceases to be a Member of the Committee from the date of such appointment. The term of the Committee does not exceed one year.
Functions
The functions of the Committee on Public Undertakings are :- (a) to examine the reports and accounts of Public Undertakings specified in the Fourth Schedule to the Rules of Procedure and Conduct of Business in Lok Sabha ; (b) to examine the reports, if any, of the Comptroller and Auditor General of India on the Public Undertakings ; (c) to examine, in the context of the autonomy and efficiency of the Public Undertakings whether the affairs of the Public Undertakings are being managed in accordance with sound business principles and prudent commercial practices ; and (d) to exercise such other functions vested in the Public Accounts Committee and the Estimates Committee in relation to the Public Undertakings as are not covered by clauses (a), (b) and (c) above and as may be allotted to the Committee by the Speaker from time to time.
Working of the Committee
The Committee selects from time to time for examination such Public Undertakings or such subjects as they may deem fit and as fall within their terms of reference. The Ministry / Undertaking concerned is asked to furnish necessary material relating to those subjects for information of the Members of the Committee. The Committee may from time to time appoint one or more Study Groups for carrying out detailed examination of various subjects. If it appears to the Committee that it is necessary for the purpose of its examination that on-the-spot study should be made, the Committee undertake tours to study any particular matter, project or undertaking with the specific approval of the Speaker. Notes relating to the Undertakings / Offices etc. to be visited are called for in advance from the Ministries / Undertakings concerned and circulated to the Members of the Committee. These form the starting point for the informal discussion which the Committee holds at the projects etc. When the Committee / Study Groups are on study tour, only informal meetings are held at the place of visit and at such meetings neither evidence is recorded nor any decisions taken. The Members of the Committee while on tour may also meet informally the representatives of Chambers of Commerce and Industry, nonofficial organisations and bodies which are concerned with the subject under examination of the Committee. Later, in the light of these informal discussions of the Committee and the memoranda and other information received, non-official and official witnesses are invited to give evidence at formal sittings of the Committee held in Parliament House / Parliament House Annexe. All discussions held by the Committee with the representatives of the Undertakings/ Ministries/ Departments, non-official organisations, Labour Unions, etc. are to be treated as confidential and no one having access to the discussions, directly or indirectly, should communicate to the Press or any unauthorized person any information about matters taken up during the discussions. The observations/ recommendations of the Committee are embodied in their reports which are presented to Parliament. After a Report has been presented to the House, the Ministry or Undertaking concerned is required to take action on various recommendations and conclusions contained in the Report. The replies of the Government are examined by an Action Taken Sub-Committee/Committee and an Action Taken Report is presented to the House.
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