PUBLIC FINANCIAL ADMINISTRATION

SUBJECT CODE : 18MPA13C PREPARED BY : Dr.R.Anitha Guest lecturer DEPARTMENT : PG and Research Department Of Public Administration CONTACT NO : 9003500812 Material prepared according to textbook and reference books given in the syllabus. SYLLABUS Parliamentary Committee

Public Accounts Committee:

Public Accounts Committee was introduced in 1921 after its first mention in the Government of Act, 1919 also called Montford Reforms. It is existing in the Indian Constitution since then. It is one of the parliamentary committees that examine the annual audit reports of CAG which the President lays before the . Those three reports submitted by CAG are:

● Audit report on appropriation accounts ● Audit report on finance accounts ● Audit report on public undertakings

The Public Accounts Committee examines public expenditure. That public expenditure is not only examined from a legal and formal point of view to discover technical irregularities but also from the point of view of the economy, prudence, wisdom, and propriety. The sole purpose to do this is to bring out cases of waste, loss, corruption, extravagance, inefficiency, and nugatory expenses.

Members of the Public Accounts Committee

The financial committee has 22 members. All the members are taken from the Indian Parliament. Out of 22 members, 15 are elected from (Lower House) and 7 members are elected from (Upper House.) (The difference between Lok Sabha & Rajya Sabha can be read in the linked article.)

Mode of the election of Public Accounts Committee’s members

The members of the committee are elected annually by the Parliament from amongst its members. The principle of Proportional Representation (PR) by means of Single Transferable Vote (STV.) This election method gives equal representation to all the members of the Parliament.

Term of the office of members of the Public Accounts committee

Every member elected by the Parliament from both Lok Sabha and Rajya Sabha are a part of the committee for a year. After a year, a new election takes place and members are changed or re-elected.

Estimates Committee:

It is a type of financial committee in the . It is a one of the parliamentary committees (permanent standing committee. The purpose of this committee is to examine the estimates included in the budget presented in the parliament. It also suggests economies in public expenditure. For the same, it is also called ‘Continuous Economy Committee.

Members of Estimates Committee

Estimates Committee has 30 members. All the members are taken from Lok Sabha (Lower House). That means that there is no representation from Rajya Sabha (Upper House.) (To know the difference between Lok Sabha and Rajya Sabha, check the linked article.) Initially, the committee had 25 members, which was later increased to 30.

Mode of the Election of Estimates Committee’s Members

Lok Sabha elects members of Estimates Committee from amongst its members. The principle of election used is Proportional Representation by the means of a single transferable vote. All parties are duly represented in the estimates committee.

Term of the Office of Members of the Estimates Committee

Every member elected by the Lok Sabha from amongst its members are a part of the committee for a year. After a year, a new election takes place and members are changed or re-elected.

Chairman of the Estimates Committee

Lok Sabha speaker is the authority to appoint the chairman of the Estimates Committee. The Chairman of the Estimates Committee is appointed invariably from the ruling party.

Functions:

● It estimates affect economies, improvements in organisation, efficiency and administrative reform consistent with the policy ● To bring efficiency and economy in governmental administration, it suggests alternative policies ● It examines whether the money is well laid out within the limits of the policy implied in the estimates. ● To suggest the forth in which the estimates are to be presented to Parliament.

Committee on Public undertaking:

● Constituted under Rule No. 312 A of Rules of Procedure and conduct of business in Lok Sabha. ● Total number of members-22 ● Term of office -Not to exceed one year Functions: ● Examines the reports and accounts of the Public Undertakings and Reports of CAG of India. ● Examines whether the affairs of Public Undertakings are being managed in accordance with sound business principles and prudent commercial practices. ● Not to examines matters of major Government policy as distinct from business or commercial functions of Public undertakings or matters of day to day administration. ● Ministers not called before the Committee.

Committee on subordinate legislation:

It examines whether the executives are exercising well, their powers to make regulations, rules, sub-rules and bye-laws delegated by the Parliament or conferred by the Constitution. In both the houses, it comprises 15 people.

Departmental Standing Committees:

● Out of the 24 standing committees, 8 work under the Rajya Sabha and 16 under the Lok Sabha. ● Members: Each standing committee consists of 31 members (21 from Lok Sabha and 10 from Rajya Sabha). The members of the Lok Sabha are nominated by the Speaker, just as the members of the Rajya Sabha are nominated by the Chairman from amongst its members. ● A minister is not eligible to be nominated as a member of any of the standing committees. In case a member, after his nomination to any of the standing committees, is appointed a minister, he then ceases to be a member of the committee. ● Tenure: The term of office of each standing committee is one year from the date of its constitution.

Role: ● They secure more accountability of the Executive (i.e., the Council of Ministers) to the Parliament. Through Committees, Parliament exercises its control and influence over administration and keeps vigilance over the executive. ● The Committees aid and assist the Legislature in discharging its duties and regulating its functions effectively, expeditiously and efficiently. They assist the Parliament in thoroughly and systematically scrutinising the matters which could not be discussed on the floor at length. ● The Committees also provide the expertise on a matter which is referred to them.