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Public accounts

Public accounts

  • In recent years, the Central government has faced criticism for evading meaningful parliamentary accountability, largely due to its comfortable majority in Parliament.
  • However, the current political landscape—characterized by a coalition government dependent on allies and a stronger Opposition—presents a renewed opportunity for effective parliamentary oversight.

Public Accounts Committee (PAC): A Proactive Approach:

  • The Public Accounts Committee (PAC), under the leadership of Congress MP K.C. Venugopal, has taken a proactive approach to oversight.
  • On September 2, 2024, the PAC notified 161 subjects for deliberation during its term, most of which are based on reports from the Comptroller and Auditor General (CAG). Notably, the PAC has selected five subjects for review on its own initiative:
    • Reforms in the banking and insurance sectors
    • Implementation review of centrally sponsored welfare schemes
    • Policy measures for energy sector transition
    • Performance review of regulatory bodies established by Acts of Parliament
    • Levy and regulation of fees, tariffs, and user charges on public infrastructure and utilities
  • This move aligns with a rule allowing the PAC to examine not just the formalities of expenditure but also its wisdom, faithfulness, and economy—a rule that has been infrequently used and often politically motivated.

Constitutional Framework and Oversight:

  • The Constitution mandates that Parliament has control over the country's finances. This includes:
    • Legislative Approval for Taxes: Any tax imposition requires parliamentary legislation.
    • Sanctioning Government Expenditure: Government expenditure needs prior approval through Appropriation Bills.
    • CAG’s Role: The CAG audits the financial functioning of all government departments and submits reports to the PAC.
  • Recent government measures have faced allegations of crony capitalism, particularly concerning regulatory oversight and public sector banks. The BJP-led NDA has opposed PAC investigations into serious allegations against individuals and entities such as SEBI Chairperson Madhabi P. Buch and the Adani Group, which controls several Indian airports.

Challenges and Opportunities:

  • The PAC’s assertive posturing faces potential challenges due to the ruling coalition’s majority in the 22-member PAC (13 from BJP-led NDA and 9 from the Opposition).
  • The effectiveness of the PAC and other parliamentary committees will hinge on their ability to assert their roles as instruments of parliamentary authority and enforcers of executive accountability.
  • The renewed focus on parliamentary oversight underscores a critical opportunity for enhancing transparency and accountability in government functioning.
  • The PAC, along with other standing committees, must leverage this moment to reinforce their role in scrutinizing government actions and ensuring that executive decisions are aligned with public interest.

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