What is the role played by the Public Account Committee of India?

All public moneys received by the government of India, other than the revenues received and loans raised or loan repayment receipts which form part of the Consolidated Fund of India, are credited to the Public Account of India.

In other words, all moneys received by an officer or court in connection with the affairs of the Union are called Public Accounts and are deposited in this Account.

As a part of parliamentary control exercised over the finances of the Union, the Constitution provides for a Public Accounts Committee (PAC). This Committee scrutinized the report of the Comptroller and Auditor General of India in details and submits its report of the Lok Sabha, so that the irregularities noticed by it are discussed in the Parliament and corrective steps are taken. With a view to ensure that the expenditure sanctioned and voted the Parliament is made accordingly. Comptroller and Auditor General (CAG) is provided for in the Constitution.

The CAG through its field agencies ensured that no money is spent without the authority of the parliament. The CAG submits its report of audit relating to the accounts of the Union to the President and lays it before the Parliament. After it is laid before the Parliament, the PAC examines such report. This Committee has 15 members from Lok Saba and 7 members from Rajya Saba. While scrutinizing the CAG report, the PAC satisfies itself about the legality and authority of the expenditures made by the Union. With the special duty assigned to it, the PAC plays an important role in exercising the Parliamentary control over the revenues and accounts of the Union.

In every Parliamentary democracy, Parliament is supreme and generally has control mechanism over the finances of the Federation. The Indian Constitution assigns this responsibility to the Parliament through the PAC. The decision of the PAC regarding explanations given by the agencies making the expenditure is final.