The Public Accounts Committee (PAC) Explained

The Public Accounts Committee (PAC) is a parliamentary financial committee that examines the audit reports of the Comptroller and Auditor General of India (CAG) and the appropriation accounts of the Government of India, to check whether public money has been spent as Parliament intended. The Public Accounts Committee is one of the oldest committees of the Indian Parliament and is widely regarded as the most important instrument of legislative control over government spending after money has been spent.

The Public Accounts Committee has 22 members, drawn from both Houses of Parliament, and by convention it is chaired by a member of the Opposition. It works closely with the CAG, whose reports form the basis of its inquiries, and its recommendations are persuasive rather than legally binding. 15 October 2026

Key Takeaways

• The Public Accounts Committee of the Indian Parliament scrutinises the CAG’s audit reports and the appropriation accounts to ensure that government expenditure matches what Parliament authorised.
• The Public Accounts Committee consists of 22 members, with 15 elected from the Lok Sabha and 7 from the Rajya Sabha, for a term of one year.
• A minister cannot be a member of the Public Accounts Committee, which keeps the body independent of the executive it examines.
• By convention, the chair of the Public Accounts Committee has been given to a member of the Opposition since the late 1960s, in order to strengthen impartial scrutiny.
• The Public Accounts Committee works after expenditure has taken place, and its recommendations are advisory, so the government is not legally bound to accept them.
• The Comptroller and Auditor General of India, appointed under Article 148, is described as the friend, philosopher and guide of the Public Accounts Committee.

What is the Public Accounts Committee?

The Public Accounts Committee is a committee of Parliament whose job is to examine how the Government of India has spent the money that Parliament granted, using the audit reports prepared by the Comptroller and Auditor General of India. It is one of three financial committees of Parliament, along with the Estimates Committee and the Committee on Public Undertakings.

The reasoning behind the committee is that voting funds in the Budget is only half of parliamentary control. The other half is checking afterwards that the funds were used lawfully and for the purposes sanctioned. The Public Accounts Committee performs this second task on behalf of the House.

The committee is set up under the Rules of Procedure and Conduct of Business in Lok Sabha and does not owe its existence to a separate Act. It is therefore a creature of parliamentary rules and convention, and its authority comes from the House that appoints it.

When and how was the Public Accounts Committee created?

The Public Accounts Committee was created in 1921 under the reforms that followed the Government of India Act, 1919, and it continued with changes after independence in 1947 and the commencement of the Constitution in 1950. It was initially a small body in the Central Legislative Assembly, and the Finance Member of the Viceroy’s Executive Council acted as its chairman for years.

After the adoption of the Constitution, the committee became a committee of the Lok Sabha, with members of the Rajya Sabha added to it. The practice of the Finance Minister serving as chair ended, and the Speaker began appointing a chairperson from among the members. In the late 1960s, the convention of appointing a member of the Opposition as chair took root, and it has generally continued since then.

Who are the members of the Public Accounts Committee?

The members of the Public Accounts Committee are 22 Members of Parliament, of whom 15 are elected by the Lok Sabha and 7 are elected by the Rajya Sabha, with each House electing its members according to the system of proportional representation by means of the single transferable vote. Elections are held every year, so the committee is reconstituted annually.

The term of office is one year. This short term lets many members gain exposure to financial scrutiny, though it has often been criticised for limiting the depth of expertise and continuity. Members are frequently re-elected, which provides some continuity in practice.

A minister cannot be elected to the committee. If a member is appointed as a minister, that member ceases to be a member of the committee from the date of appointment. The Speaker of the Lok Sabha appoints the chairperson from among the Lok Sabha members of the committee, and the Lok Sabha members of the committee alone can hold this office.

What does the Public Accounts Committee do?

The Public Accounts Committee examines the appropriation accounts, the finance accounts and the CAG’s audit reports to verify that money spent by the government was legally available, was used for the purpose for which it was granted, and was spent in accordance with the authority governing it. These duties summarise the committee’s core functions.

• Appropriation accounts: The committee checks whether the actual expenditure on each grant matched the amount voted by Parliament and charged under the appropriate heads.
• Finance accounts: The committee reviews the annual accounts that show the receipts and disbursements of the Union Government.
• Audit reports of the CAG: The committee examines the CAG’s reports on the accounts of the Government and its departments, concentrating on cases of irregularity, loss, waste or extravagance.
• Autonomous and semi-autonomous bodies: The committee examines accounts of autonomous bodies where they are audited by the CAG, other than public sector undertakings, which are mostly the domain of another committee.
• Verification of authority: The committee satisfies itself that each item of expenditure was sanctioned by a competent authority and is consistent with financial rules.
• Excess and unsanctioned spending: The committee examines cases where spending exceeded the voted grant and recommends how such excess should be treated.

In carrying out these tasks the committee calls officials of the ministries, usually Secretaries, to give oral evidence and explain the audit objections. It also receives written replies. After taking evidence, it prepares a report with its findings and recommendations.

How does the Public Accounts Committee work with the CAG?

The Public Accounts Committee works with the Comptroller and Auditor General of India as its principal technical adviser, because the CAG’s audit reports provide the evidence on which the committee’s inquiries are built. The CAG is an independent constitutional authority appointed under Article 148 and can be removed only in the manner and on the grounds applicable to a Supreme Court judge.

The CAG audits the accounts of the Union and the States and submits reports under Article 151. These reports are submitted to the President, who has them laid before Parliament. Once laid, the reports are referred to the Public Accounts Committee for examination.

The CAG, or a representative, assists the committee during its sittings, helping to identify the paragraphs that need attention and explaining the audit position. Because of this close relationship, the CAG is often described as the friend, philosopher and guide of the committee. The relationship is cooperative but separate, as the CAG is not accountable to the committee and the committee does not control the audit.

What is the procedure followed by the Public Accounts Committee?

The procedure of the Public Accounts Committee involves selecting audit paragraphs, seeking written replies from ministries, taking oral evidence, adopting a report, and following up on the action taken by the government. The procedure is designed to give the department a fair chance to explain before the committee draws conclusions.

Selection and evidence

The committee chooses which audit paragraphs to examine, usually focusing on significant financial irregularities. It sends questionnaires to the concerned ministry, and then it holds sittings where officials appear before it. Evidence is generally recorded in private, though the committee’s reports are public once presented to the House.

Reports and action taken

After deliberation, the committee adopts its report and presents it to the Lok Sabha. The government must furnish an Action Taken Note on each recommendation, and the committee then reviews these notes and prepares an Action Taken Report. This cycle ensures follow-up on earlier recommendations.

Sub-committees

The committee often forms sub-committees and working groups to handle specific subjects, such as particular ministries or topics, in order to manage the volume of audit paragraphs it receives each year.

What are the powers of the Public Accounts Committee?

The powers of the Public Accounts Committee include the power to summon officials, call for documents and records, take evidence, and recommend corrective action. These powers derive from the rules of the House and from the privileges of Parliament.

The committee can call any witness whom it deems necessary and require the production of relevant papers, with limited exceptions for matters of national security or other privileged information. It can recommend remedial steps, such as the recovery of losses, the revision of procedures, or the fixing of responsibility, and it can report its findings to the House so that they are publicly known.

The committee’s strength is therefore moral and political more than legal. A well-argued report, backed by the CAG’s evidence and the committee’s public standing, can create pressure on the government to act even though no law compels it to do so.

What are the limits of the Public Accounts Committee?

The limits of the Public Accounts Committee are that it acts after the expenditure has been incurred, that its recommendations are advisory, and that it cannot question the policy decisions of the government. These limits arise from the nature of its function as a post-audit body and not from any procedural flaw.

• Post-facto review: The committee examines expenditure after it has happened, so it cannot stop an irregular payment in advance.
• Recommendatory nature: The committee can only recommend. The government is expected to respond, but it is not legally bound to accept the committee’s advice.
• No policy review: The committee examines the legality and regularity of spending and cannot question the wisdom of the policy behind it.
• No day-to-day administration: The committee cannot intervene in the administration of departments, and it may not issue orders to officials.
• Dependence on the CAG: The committee’s work depends on audit coverage, and matters that the CAG has not examined are less likely to be taken up.
• Time lag: Audit reports may reach the committee several years after the spending, which dilutes their immediacy.

How is the Public Accounts Committee different from the other financial committees?

The Public Accounts Committee differs from the other financial committees mainly in its focus on past expenditure and audit, while the Estimates Committee looks at future estimates and the Committee on Public Undertakings looks at public sector companies. Together, the three form the framework of parliamentary financial scrutiny.

Why does the Public Accounts Committee matter?

The Public Accounts Committee matters because it is the main way Parliament holds the executive financially accountable, and it supports transparency and good governance in the use of public funds. Without a body of this kind, the executive would have little reason to explain itself after receiving the House’s sanction.

The committee has examined many significant matters over the decades, including defence procurement, public sector losses, and the management of government schemes, and its reports have often been the basis for administrative reform. Its tradition of an Opposition chair reflects a basic principle of democratic accountability, which is that scrutiny of the government is most credible when led by someone outside it.

The committee is also a model for State legislatures, most of which have their own Public Accounts Committees that examine the CAG’s reports on State finances in the same way.

Bottom Line

The Public Accounts Committee is Parliament’s principal tool for checking, after the fact, that public money has been spent lawfully and sensibly. Its authority rests on the CAG’s audit reports, its non-ministerial membership and the convention of an Opposition chair, though its recommendations remain advisory.

Frequently Asked Questions

What is the Public Accounts Committee in India?

The Public Accounts Committee is a parliamentary committee that examines the CAG’s audit reports and the appropriation accounts of the Government of India. It checks that money was spent for the purposes and within the limits approved by Parliament. It is one of the three financial committees of Parliament.

How many members does the Public Accounts Committee have?

The Public Accounts Committee has 22 members, of whom 15 are elected from the Lok Sabha and 7 from the Rajya Sabha. The members are elected every year by proportional representation through the single transferable vote. Ministers cannot be members.

Who is the chairperson of the Public Accounts Committee?

The chairperson is appointed by the Speaker of the Lok Sabha from among the committee’s Lok Sabha members. By convention, since the late 1960s, a member of the Opposition has been appointed as chair. This practice is intended to make the scrutiny of the government more impartial.

What is the relationship between the Public Accounts Committee and the CAG?

The CAG is the independent auditor whose reports form the basis of the Public Accounts Committee’s work. The CAG audits government accounts under Article 148 and submits reports that are laid before Parliament and then examined by the committee. The CAG is often called the friend, philosopher and guide of the committee.

Are the recommendations of the Public Accounts Committee binding on the government?

No, the recommendations of the Public Accounts Committee are not binding. The government is expected to consider them and submit Action Taken Notes, which the committee reviews. Their influence rests on the committee’s reputation, the evidence in the CAG’s reports and the political pressure of a public report.

What is the difference between the Public Accounts Committee and the Estimates Committee?

The Public Accounts Committee reviews past spending using audit reports, while the Estimates Committee examines the budget estimates to suggest economies. The Public Accounts Committee has 22 members from both Houses, whereas the Estimates Committee has 30 members drawn only from the Lok Sabha. The first is retrospective, and the second looks at how future spending can be made more efficient.

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