The Committee on Estimates and Public Accounts Committee are parliamentary committees constituted to examine government spending and ensure accountability. The Estimates Committee consists of 30 Lok Sabha members elected annually to examine budget estimates, identify inefficiencies, and suggest reforms. The Public Accounts Committee has 15 Lok Sabha and 7 Rajya Sabha members to scrutinize government accounts, audit reports, and cases of financial irregularities. Both committees play an important role in parliamentary oversight and promoting fiscal discipline.

1. Estimates Committee and Public
Account Committee
By Y Kumar, ex IAS

2. Committee on Estimates
• The Committee on Estimates is constituted under
Rule 310 of the Rules of Procedure and Conduct
of Business in Lok Sabha
• Committee on Estimates consists of 30
members—all from Lok Sabha
• elected by Lok Sabha every year from amongst its
members
– according to the principle of proportional
representation by means of single transferable vote.
– each Party/Group is represented on the Committee in
proportion to its strength in Lok Sabha

3. Composition
• The Chairperson of the Committee is
appointed by the Speaker from amongst the
members elected to the Committee
• Minister not to be Member of Committee
– A member ceases to be a member of the
Committee from the date of appointment as
Minister.
• The term of office of the members of the
Committee does not exceed one year

4. Functions
• Examination of such of the estimates as may seem fit
to the Committee or are specifically referred to it by
the House or the Speaker.
– to report what economies, improvements in organisation,
efficiency or administrative reform, consistent with the
policy underlying the estimates, may be effected;
– to suggest alternative policies in order to bring about
efficiency and economy in administration;
– to examine whether the money is well laid out within the
limits of the policy implied in the estimates;
– to suggest the form in which the estimates shall be
presented to Parliament.

5. Continuous process
• The examination by the Committee of the estimates for the
Ministries/Departments of Government is a continuing
exercise throughout the financial year
• Committee reports to the House as its examination
proceeds.
• It is not incumbent on the Committee to examine the entire
estimates in any one year.
• The Demands for Grants may be finally voted even though
the Committee has made no report.

6. Policy
• The term ‘policy’ referred to in Rule 310 relates only to policies laid
down by Parliament either by means of statutes or by specific
resolutions passed by it from time to time.
• It is also open to the Committee to examine any matter which may
have been settled as a matter of policy by the Government in the
discharge of its executive functions.
• The Committee does not go against the policy approved by
Parliament; but where it is established on evidence that a particular
policy is not leading to the expected or desired results or is leading
to waste, it is the duty of the Committee to bring to the notice of
the House that a change in policy is called for.

7. Selection of Subjects for Examination
• At the beginning of its term every
• Committee selects subjects concerning
the estimates or any part of the
estimates of a Ministry/Department of
Central Government
• Such statutory and Government
organisations subordinate thereto, as
do not fall within the purview of the
Committee on Public Undertakings
• Ad hoc subjects of public importance
may also be referred to Committee for
examination from time to time by the
House or the Speaker

8. Calling for Information
• Calling for Information from Government
• Committee may also call for memoranda on
the subjects under examination from non-
official organisations/individuals
• The Committee later takes oral evidence of
the representatives of the
Ministries/Departments/ Organisations
• Ministers not called before Committee

9. Action Taken Reports
• After presentation to the Lok Sabha, the report is forwarded to the
Ministry or Department concerned which is required to take action
• Action taken notes received from the Ministries/ Departments are
examined by the Committee/Study Group/sub-Committee and Action
Taken Reports of the Committee are presented to the House.

10. • Public Account Committee

11. COMMITTEE ON PUBLIC ACCOUNTS
• Fifteen members elected by Lok Sabha
• Seven members of Rajya Sabha elected
• Elected according to the principle of proportional
representation by means of single transferable vote.
• The Chairperson of the Committee is appointed by the
Speaker from amongst the members of Lok Sabha
• As a convention, ( 1967-68) a member of main
opposition party/group is appointed as the Chairperson
• Minister not to be Member of Committee
• The term of office of members of the Committee does
not exceed one year at a time.

12. Annual Appropriation Accounts
• Controller General of Accounts (CGA)
– The Office of CGA prepares monthly and annual analysis of
• expenditure,
• revenues,
• borrowings
• various fiscal indicators for the Union Government.
• Under Article 150 of the Constitution, the Annual
Appropriation Accounts (Civil) and Union Finance Accounts
are submitted to Parliament on the advice of Comptroller and
Auditor General of India.

13. Functions of the Committee
• The Public Accounts Committee examines
– the accounts showing the appropriation of the sums granted by
Parliament to meet the expenditure of the Government of India,
– the Annual Finance Accounts of the Government of India and
– such other accounts laid before the House
• Reports of the Comptroller and Auditor General of India on
Appropriation Accounts of the Union Government
• Various Audit Reports of the Comptroller and Auditor
General on revenue receipts, expenditure by various
Ministries/ Departments of Government and accounts of
autonomous bodies.
• The Committee does not examine the accounts relating to
such public undertakings as as are allotted to the
Committee on public undertakings.

14. Duty of the Committee
• The duty of the Committee to satisfy itself —
– That the money shown in the accounts as having
been disbursed were legally available for and
applicable to the service or purpose to which
they have been applied or charged;
– that the expenditure conforms to the authority
which governs it;
– every re-appropriation has been made in
accordance with the provisions made in this
behalf under rules framed by competent authority

15. Money is spent-within the scope of
the demand
• An important function of the Committee is to
ascertain that money granted by Parliament
has been spent by Government “within the
scope of the demand”.
• The Committee thus examines cases involving
losses, nugatory expenditure and financial
irregularities

16. Revenue Receipts
• While scrutinising the Reports of Comptroller
and Auditor General on Revenue Receipts
– examines various aspects of Government’s tax
administration.
– examines cases involving under-assessments, tax-
evasion, non-levy of duties, mis-classifications
etc.,
– identifies loopholes in the taxation laws and
procedures and makes recommendations in order
to check leakage of revenue

17. Regularisation of Excess Expenditure
– 115(b) if any money has been spent on any service during
a financial year in excess of the amount granted for that
service and for that year, cause to be laid before both the
Houses of Parliament another statement showing the
estimated amount of that expenditure or cause to be
presented to the House of the People a demand for such
excess, as the case may be.
– Role of PAC If any money has been spent on any service during a
financial year in excess of the amount granted by the House for that
purpose the Committee shall examine with reference to the facts of each
case the circumstances leading to such an excess and make such
recommendation as it may deem fit. Such excesses are thereafter
required to be brought up before the House by Government for
regularization in the manner envisaged in Article 115 of the Constitution

18. 115. Supplementary(insufficient), additional(new service) or excess
grants(money has been spent on any service during a financial year in excess
).—
• (1) The President shall—
– (a) if the amount authorised by any law made in accordance with the provisions of article 114 to
be expended for a particular service for the current financial year is found to be insufficient for the
purposes of that year or when a need has arisen during the current financial year for
supplementary or additional expenditure upon some new service not contemplated in the annual
financial statement for that year, or
– (b) if any money has been spent on any service during a financial year in excess of the amount
granted for that service and for that year, cause to be laid before both the Houses of Parliament
another statement showing the estimated amount of that expenditure or cause to be presented to
the House of the People a demand for such excess, as the case may be.
– Role of PAC If any money has been spent on any service during a financial year in excess of the amount granted by the
House for that purpose the Committee shall examine with reference to the facts of each case the circumstances leading
to such an excess and make such recommendation as it may deem fit. Such excesses are thereafter required to be
brought up before the House by Government for regularization in the manner envisaged in Article 115 of the
Constitution
• (2) The provisions of articles 112, 113 and 114 shall have effect in relation to any such
statement and expenditure or demand and also to any law to be made authorising the
appropriation of moneys out of the Consolidated Fund of India to meet such
expenditure or the grant in respect of such demand as they have effect in relation to
the annual financial statement and the expenditure mentioned therein or to a
demand for a grant and the law to be made for the authorisation of appropriation of
moneys out of the Consolidated Fund of India to meet such expenditure or grant.

19. Subjects for Examination
• Selects paragraphs and/or Reports of the Comptroller and Auditor General
for in-depth examination
• Examining Audit reports and Appropriation Accounts laid on the Table of
the House
• Committee of its own accord may inquire into various irregularities which
have become public or which have been brought to the notice of the
Government, even though there was no Audit Report on the subject or the
Audit Report thereon may be presented later

20. Other aspects
• Assistance by Comptroller and Auditor General in the examination
of Accounts and Audit Reports
• A number of Working Groups/Sub-Committees are constituted by
the Chairperson
• Calling for Information from Government
• The Committee undertakes on the spot study tours/visits of various
Departments/Establishments
• The Committee later takes oral evidence of the representatives of
the Ministries/Departments
• Ministers not called before Committee
• Action Taken on Reports - After presentation to the Lok Sabha,
copies of the Report are forwarded to the Ministry or Department
• Statements of action taken on Action Taken Reports -. Replies
received from Government in respect of recommendations are also
laid on the Table of Lok Sabha/Rajya Sabha in the form of
Statements