Maarg Manthan · Topic 16.11

Parliamentary Committees (Public Accounts, Estimates, Public Undertakings)

Indian Polity › Parliament · Topic 16.11

Parliamentary committees, standing and ad hoc, assist Parliament: the PAC, Estimates Committee and COPU examine public finance, and 24 Department-Related Standing Committees, set up in 1993, scrutinise ministries; all are advisory.

5 min read · UPSC Prelims · Polity · Parliament

At a Glance

What it is Committees through which Parliament examines its work in detail
Types Standing and ad hoc committees
Financial committees Public Accounts, Estimates and Public Undertakings
Departmental committees 24 committees established in 1993
Exam link UPSC Prelims, Polity: Parliament

Where Does It Fit?

This is the eleventh topic of the category on Parliament. Parliament is too unwieldy a body to deliberate effectively on every issue and it lacks adequate time and expertise, so it is assisted by committees. The Constitution mentions them without specifying their composition, tenure or functions, which are left to the rules of the Houses.

What Is a Parliamentary Committee?

A parliamentary committee is appointed or elected by the House or nominated by the Speaker or Chairman, works under their direction, presents its report to the House or the presiding officer, and has a secretariat provided by the Lok Sabha or Rajya Sabha. Consultative committees are not parliamentary committees as they do not fulfil these four conditions. Committees are standing (permanent) or ad hoc (temporary). Standing committees fall into six categories: financial committees; department-related standing committees; committees to inquire (Petitions, Privileges, Ethics); committees to scrutinise and control (Government Assurances, Subordinate Legislation, Papers Laid on the Table, Welfare of SCs and STs, Empowerment of Women, Joint Committee on Offices of Profit); committees on the day-to-day business (Business Advisory, Private Members’ Bills and Resolutions, Rules, Absence of Members); and house-keeping committees (General Purposes, House, Library, Joint Committee on Salaries and Allowances). Ad hoc committees are inquiry committees and advisory committees, such as select or joint committees on bills.

The Financial Committees

Point	Public Accounts Committee	Estimates Committee	Committee on Public Undertakings
Origin	1921 under the Government of India Act, 1919	1950 on John Mathai’s recommendation; roots in a 1921 standing financial committee	1964 on the Krishna Menon Committee’s recommendation
Members	22 (15 Lok Sabha + 7 Rajya Sabha)	30, all from Lok Sabha	22 (15 Lok Sabha + 7 Rajya Sabha)
Election	By Parliament each year; single transferable vote	By Lok Sabha each year; single transferable vote	By Parliament each year; single transferable vote
Term	One year	One year	One year
Chairman	Appointed by the Speaker; from the opposition since 1967	Appointed by the Speaker; generally from the ruling party	Appointed by the Speaker
Function	Examines the CAG’s audit reports (appropriation accounts, finance accounts, public undertakings)	Examines estimates and suggests economies; called a continuous economy committee	Examines reports and accounts of public undertakings and the CAG reports on them

A minister cannot be a member of any of the three. The PAC examines expenditure from the point of view of economy, prudence, wisdom and propriety, and the CAG is its guide, friend and philosopher. All three committees are post-mortem in nature, advisory, and cannot issue orders.

On the recommendation of the Rules Committee of the Lok Sabha, 17 Department-Related Standing Committees (DRSCs) were set up in 1993; in 2004 seven more were added, making 24. Eight work under the Rajya Sabha and 16 under the Lok Sabha. Each consists of 31 members, 21 from the Lok Sabha nominated by the Speaker and 10 from the Rajya Sabha nominated by the Chairman, and the term is one year. A minister cannot be a member. Their functions are to consider demands for grants before they are voted, without suggesting cut motions; to examine bills of the ministries; to consider annual reports; and to consider long-term policy documents. They should not consider day-to-day administration and their recommendations are advisory. Their objective is to secure more accountability of the Executive to Parliament, particularly financial accountability.

Ad Hoc Committees

Inquiry committees are constituted from time to time by the two Houses on a motion or by the Speaker or Chairman to inquire into and report on specific subjects, for example the Railway Convention Committee and the Committee on Members of Parliament Local Area Development Scheme. Advisory committees include select or joint committees on bills, which consider the bill clause by clause, can take evidence from associations and experts, and report to the House; members who disagree can append minutes of dissent.

Why Is This Topic Important?

Comparison table The three financial committees are asked together
Membership numbers 22, 30 and 22 are standard
DRSC details 24 committees; 31 members

What Came Next?

The next topic covers Question Hour, Zero Hour and other parliamentary devices.

Key People and Terms

Standing committee Permanent committee
Ad hoc committee Temporary committee
Post-mortem Examination after the spending
DRSC Department-related standing committee
Select committee Committee on a bill

Exam Corner

Points to Remember

PAC 22; Estimates 30 (all Lok Sabha); COPU 22.
PAC chairman from the opposition since 1967.
24 DRSCs of 31 members each (21 + 10).
A minister cannot be a member.

Do Not Confuse With

PAC and Estimates Committee Audit of past spending versus economy in estimates
Standing and ad hoc Permanent versus temporary
Consultative and parliamentary committees Consultative ones lack the four features

Memory Hook

PAC checks, Estimates economise, COPU watches PSUs; twenty-four DRSCs read every ministry.

Mains Angle

Questions on this topic usually ask about effectiveness. Use these points to add depth.

Detailed scrutiny Parliament lacks time and expertise
Post-mortem limits Advisory and after the fact
Accountability DRSCs strengthen financial control
Opposition chair PAC convention since 1967

A Question You May Face

An original practice question, not a past paper question.

“Evaluate the role of parliamentary financial committees in ensuring accountability.”

How to Answer

Introduction Need for committees.
Three committees Features and functions.
DRSCs Reform of 1993.
Conclusion Limits and improvements.

GS Relevance

Prelims: Indian Polity, Parliament. GS Paper 2: Parliamentary committees.

Frequently Asked Questions

What are the financial committees of Parliament?

The three financial committees are the Public Accounts Committee, the Estimates Committee and the Committee on Public Undertakings. They examine the audit reports of the CAG, the budget estimates and the working of public sector undertakings respectively.

What is the Public Accounts Committee?

The PAC, first set up in 1921, has 22 members, 15 from the Lok Sabha and 7 from the Rajya Sabha, elected every year. It examines the CAG audit reports on appropriation accounts, finance accounts and public undertakings, and is chaired by an opposition member by convention since 1967.

How is the Estimates Committee different from the PAC?

The Estimates Committee has 30 members, all from the Lok Sabha, and examines the estimates in the budget to suggest economies in public expenditure, so it is called a continuous economy committee. The PAC examines audit reports on spending already incurred and has members from both Houses.

What are Department-Related Standing Committees?

DRSCs are 24 committees, set up in 1993 and expanded in 2004, covering all ministries. Each has 31 members, 21 from the Lok Sabha and 10 from the Rajya Sabha, and they examine demands for grants, bills, annual reports and policy documents.

What are the limitations of the financial committees?

Their work is in the nature of a post-mortem, their recommendations are advisory and not binding on ministries, they cannot issue orders, and they cannot intervene in day-to-day administration or disallow expenditure. Parliament takes the final decision.

PYQ Practice — Statement Analysis

1 The Estimates Committee has members from the Rajya Sabha.

False

All 30 are from the Lok Sabha.

2 The PAC chairman is from the opposition by convention since 1967.

True

Appointed by the Speaker.

3 A minister can be a member of the PAC.