Question 3GS2GS2

Discuss the key functions of the Public Accounts Committee (PAC). What steps should be taken to revamp the Public Accounts Committee (PAC) in order to enhance its effectiveness as a true guardian of public funds?

Introduction

Public Accounts Committee (PAC) is an financial parliamentary committee which keeps check on financial health of Parliament and public body. Urban local bodies makes the grassroot touchpoint of the nation, thus play important role in checking urbanization. Constitution provide for parliamentary privileges (Art 105 & 194) and fundamental rights (Art 22-35 both provide free speech).

55 words

Main Body

Public Accounts Committee (PAC) is an financial parliamentary committee which keeps check on financial health of Parliament and public body.

Key functions:

1A standing committee → advising on financial health

2Philosopher & guide & friend to the CAG → helps in auditing

3Checks the Auditing Report by CAG

4Scrutinize the expenditures of the Parliament

5Scrutinize the demands of grants to CAG except grant (even before granting)

Challenges there:

Post mortem analysis

Only recommendatory Power

Only lichen tenure

less meetings and appeals to examine

Steps to Revamp:

1As per experts (NCRWC) → the tenure should be at least 2 years.

2Clear goal & mission → mechanism through charter.

3Enforcement power of some sort should be given

4Expenditures should be given to scrutinize at the stage of grant only (for excess grant)

Along with estimates committee and Public undertaking committee it plays a great role in ensuring effective use of public fund.

Urban local bodies makes the grassroot touchpoint of the nation, thus play important role in checking urbanization. Role

Role of Urbanization in Economic growth:

1Industrialization → livelihood to millions

2IT industry (eg Bangalore, Mumbai) etc

3Even Tier II & Tier III cities are getting transformed.

4Employment in non-agriculture sector → Manufacturing MSMEs

5Urbanization (31% as per 2011 census) contributes 60% of the national GDP

6Exports (eg Smart phones)

changes in ULBssuggested by 15th FC:

1Municipal bonds should be issued by ULBs for revenue generation (eg → 10 year green bonds)

2Own revenue capabilities → less dependence on grants of State & centre.

3Specific local grants to enhance capability to be given to ULBs.

Evaluationbeneficial for capital investment, living, better planned urbanization, standard increases

Challengesdifficult to attract investors for bonds, less lucrative bonds, no source of revenue + high premium generation, maximum grant remain schematted

ULBs are essential to grassroot democracy and utilizing local resources in better manner.

Constitution provide for parliamentary privileges (Art 105 & 194) and fundamental rights (Art 22-35 both provide free speech).

Difference:

Parliamentary Privilege:

1No codification (Vague)

2Individual can speak freely his mind in parliament → No proceedings in court → only within house

3No specific ground of restriction given

Fundamental Rights:

1Enumerated in constitution

2Freedom anywhere in the country → is stated right to show

3Subject to reasonable restriction (Art 19(2))

way forward can be to codify the privilege as done in various country like UK, Canada etc.

Art 105 & 194, Art 19(1)(4), Art 19(1)(9)

Art 13(2), Narrow connation:

widy connected, is include right to know, is right to remain silent etc.

way to maintain balance:

1for better synergy between rights within & outside parliament

2To prevent any inviting provoking statement by minister/mp/m.Ls

3will produce care of state speech, unusually behaviour etc.

CSOs are 'driven by democracy' as they engine people participation.

495 words17 paragraphs

Conclusion

Along with estimates committee and Public undertaking committee it plays a great role in ensuring effective use of public fund. ULBs are essential to grassroot democracy and utilizing local resources in better manner. way forward can be to codify the privilege as done in various country like UK, Canada etc.

50 words

Open original scan

Page 11

Topper

Anjali Thakur

AIR 432023

Subject & Paper

GS2GS2

Topic

Constitutional Posts and Bodies - Appointment, Powers, Functions and Responsibilities

Comptroller and Auditor General

Public Accounts Committee Functions and Role

Writing Stats

600

Total words

Paragraphs

comparative

Tone