Parliamentary Committee ~ UPSC Polity Notes

The work done by the Parliament in modern times is not only varied and complex in nature, but also considerable in volume. The time at its disposal is limited. It cannot, therefore, consider all the legislative and other matters that come up before it. A good deal of its business is, therefore, transacted in Committees of the House, known as Parliamentary Committees

Parliamentary Committee means a Committee which is appointed or elected by the House or nominated by the Speaker and which works under the direction of the Speaker and presents its report to the House or to the Speaker and the Secretariat.

By their nature, Parliamentary Committees are of two kinds: Standing Committees and Ad hoc Committees.

Standing Committees are permanent and regular committees which are constituted from time to time in pursuance of the provisions of an Act of Parliament or Rules of Procedure and Conduct of Business in Lok Sabha. The work of these Committees is of continuous nature. The Financial Committees, Department Related Standing Committees (DRSCs) and some other Committees come under the category of Standing Committees.
Ad hoc Committees are appointed for a specific purpose and they cease to exist when they finish the task assigned to them and submit a report. The principal Ad hoc Committees are the Select and Joint Committees on Bills. Railway Convention Committee, Joint Committee on Food Management in Parliament House Complex etc. also comes under the category of ad hoc Committees.

Need For Parliamentary Committees:

Thorough scrutiny of bills
Eases work burden of the Executive as it is involved in multiple works.
Allows detailed deliberation on the Bills in a calm atmosphere.
Parliamentary Committees acts as vibrant link between the Parliament, the Executive and public -through opinion seeking.
Committees assist Legislature & Prevent Misuse of Power of Executive.
Through Committees, Parliament exercises its control and influence over administration.
Provides Expertise on diverse areas of legislations which helps in understanding the nuances of any Issue at hand.
Give opportunity to new MPs (back benchers) who do not get adequate time to speak in Parliament.
The committee system is designed to enhance the capabilities of MPs, enlighten them on the whole gamut of government activity and contribute ideas to strengthen parliamentary system and improve governance.

Challenges of Parliamentary Committees:

Elections to Parliamentary Committees occur annually, this often leads to continuous change in their composition. MPs fail to develop specialization.
Lack of adequate specialized secretariat support.
There is no mandate in the rule of both houses of Parliament to necessarily refer bills to Standing Committees, Government in the name of exigency does not want bills to be referred to Standing Committees. This often leads to lack of detailed scrutiny of a bill.
MPs are unable to pay attention to committees as their political, social obligations and constituencies make a huge demand on their time. They fear that if they fail to attend to these, they will lose election.
Despite the committee functioning under the overall control of the presiding officers, no mechanism for a regular assessment of performance of committees have been put in place.

Way Forward:

Tenure of Parliamentary Committees needs to be increased to the term of the house.
Presiding officers should send all bills for scrutiny by Parliamentary Committees.
A mechanism needs to be developed for regularly assessing the performance of committees by presiding officers. For eg. A meeting of chairman of all committees with the Speaker and Vice-President should happen during each session of the house.

Public Accounts Committee (PAC)

Significance:

PAC charged with a critical function of legislature. overseeing government finances. PAC holds ministries accountable to audit reports of the CAG, inquiries into whether government funds were spent for purposes for which they were allocated, and into the reasons for any excess expenditure by government bodies.

Highest Parliamentary financial oversight committee.
Even increasing demand from citizens for probity and accountability especially in matters of public finance.
PAC should function as a model and mentor for the PACS functioning in the State legislatures ensuring integrity of public expenditure at State level.

Historical Evolution

First set up in 1921 in the wake of the Montague- Chelmsford Reforms, underwent a radical change with the coming into force of the Constitution (1950), when the PAC became a Parliamentary Committee functioning under the control of the Speaker with a non-official Chairman appointed by the Speaker from among the Members of Lok Sabha elected to the Committee. The Minister of Finance ceased to be a Member of the Committee.

Structure of PAC:

PACs constituted by Parliament every year.
Members of PAC-Consists of 22 members of which 15 are from Lok Sabha and 7 members of Rajya Sabha elected every year according to the principle of proportional representation by means of single transferable vote.
Chairperson appointed by Speaker. There is convention that the Chairman is from opposition.
Union Minister is not eligible to be elected as a member of PAC
The Reports of the Committee are adopted by consensus among members.

Functions:

Consider Demands for Grants of various Ministries/Departments of Union Government and make reports to the Houses. Thus, PAC ascertains that money granted by Parliament has been spent by the government within the scope of the demand.
Brings extravagant expenditure into notice of Parliament The committee not only ensures that ministries spend money in accordance with parliamentary grants, but also brings to the notice of the Parliament instances of extravagance, loss, in fructuous expenditure and lack of financial integrity in public services.
Examine Bills referred to Committee by Chairman, Rajya Sabha or the Speaker, Lok Sabha and make reports thereon.
Consider Annual Reports of Ministries/departments, Policy Documents and make suitable reports
Examine Report of CAG of accounts of the Union Government submitted by CAG to the President. Article 151 of the Indian constitution requires the President to lay this report before each House of the Parliament.
In examining the report of the CAG, the committee has to satisfy itself that
- The expenditures made by the government, were authorized by the Parliament.
- That the expenditures under any head has not crossed the limits of parliamentary authorization.
Examine Accounts & Audit Reports - The Committee is assisted by the Comptroller and Auditor General in the examination of Accounts and Audit Reports on revenue receipts, expenditure by various Ministries/ Departments of Government and accounts of autonomous bodies.
Examine Loopholes in Tax Administration – While scrutinising the Reports of CAG on revenue receipts, PAC examines various aspects of Government's tax administration. PAC examines cases involving under-assessments. tax evasion. non-levy of duties. misclassifications etc. identifies the loopholes in the taxation laws and procedures and makes recommendations to check leakage of revenue.
PAC does not examine the accounts relating to such public undertakings as such accounts are allotted to the Committee on Public Undertakings.
PAC cannot question policies of government - It only concerns itself with the execution of policy on its financial aspects.
Summoning by PAC - Representatives of Ministries appear before it while examining Accounts and Audit
Reports relating to their Ministries A Minister is not called before Committee either to give evidence or for consultation in connection with examination of Accounts by the Committee.
Evaluates Taxation Issues PAC examines cases (involving under-assessments, tax evasion, non-levy of duties misclassifications etc., identifies loopholes in taxation laws and procedures and makes recommendations to check leakage of revenue.
Examines various Audit Reports of the CAG on revenue receipts, expenditure by various Ministries/Departments of Government and accounts of autonomous bodies.

Challenges With Functioning Of PAC:

The Committee, however, does not examine the accounts relating to such public undertakings as are allotted to the Committee on public undertakings
Cannot question policies of the government. It only concerns itself with the execution of policy on its financial aspects.
The reports of the committee are adopted by consensus. This creates issues as dissenting issues are usually dropped by committee.
Challenges of reports of CAG on which PAC reports are based: increase share of government expenditure through NGOs and Public Private Partnership which are beyond the mandate of CAG audit

Summoning By PAC:

The representatives of the Ministries appear before the Committee while examining the Accounts and Audit Reports relating to their Ministries. A Minister is not called before the Committee either to give evidence or for consultation in connection with the examination of Accounts by the Committee
The Chairperson of PAC may whenever he considers necessary, (after its deliberations are concluded) have an informal talk with the Minister concerned to apprise her/him of
- any matters of policy laid down by the Ministry with which the Committee does not fully agree: and
- any matters of secret and confidential nature which the Committee would not like to bring on record in its report.

Report of PAC Presented in Lok Sabha and Rajya Sabha:

After conclusion and adoption of Report by PAC, the Report is presented by the Chairperson to the Lok Sabha and a copy of the Report is also laid on the Table of Rajya Sabha. The Reports of the Committee are adopted by consensus among members.
After presentation to the Lok Sabha, copies of the Report are forwarded to the Ministry or Department concerned which is required to act on the recommendations and observations contained in the Report and furnish action taken notes thereon within six months from the date of presentation of the Report.
Action taken by Ministry or Department is taken note of and report of actions taken by the concerned ministry or department on suggestions of PAC is laid on the table of Lok Sabha and Rajya Sabha.
Replies received from Government in respect of recommendations contained in the Action Taken Reports after approval by the Chairperson are also laid on the Table of Lok Sabha/Rajya Sabha in the form of Statements.

Strengthening Public Accounts Committee:

PAC should be consulted before appointment of CAG as PAC and CAG work in tandem to ensure integrity of government finances.
PAC should frequently form sub-committees to explore more reports.
Need for Suo moto selection of subjects i.e. apart from Audit report based examination.
Strengthening of Secretariat of PACS by inducting professionals and experts
PAC can consider collection of information through social audit agencies, NGOs and through internet portals dedicated to PACS.
Dissent notes for differing opinions should be allowed in the reports of PAC which will allow differing opinions to find space in the reports of PAC

Estimate Committee

The origin of this committee can be traced to the standing financial committee set up in 1921. The first Estimates Committee in the post-independence era was constituted in 1950 on the recommendation of John Mathai, the then finance minister.

Structure:

Originally, it had 25 members but in 1956 its membership was raised to 30. All the thirty members are from Lok Sabha only.
The Rajya Sabha has no representation in this committee. These members are elected by the Lok Sabha every year from amongst its own members, according to the principles of proportional representation by means of a single transferable vote.
The term of office is one year. A minister cannot be elected as a member of the committee.
The chairman of the committee is appointed by the Speaker from amongst its members and he is invariably from the ruling party.

The function of the committee is to examine the estimates included in the budget and suggest economies in public expenditure. Hence, it has been described as a 'continuous economy committee'. In more detail, the functions of the committee are:

To report what economies, improvements in organisation, efficiency and administrative reform consistent with the policy underlying the estimates, can be affected.
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 are to be presented to Parliament The Committee shall not exercise its functions in relation to such public under- takings as are allotted to the Committee on Public Undertakings.
The Committee may continue the examination of the estimates from time to time, throughout the financial year and report to the House as its examination proceeds.

It shall not be incumbent on the Committee to examine the entire estimates of any one year. The demands for grants may be finally voted despite the fact that the Committee has made no report.

However, the effectiveness of the role of the committee is limited by the following:

It examines the budget estimates only after they have been voted by the Parliament, and not before that.
It cannot question the policy laid down by the Parliament.
Its recommendations are advisory and not binding on the ministries.
It examines every year only certain selected ministries and departments. Thus, by rotation, it would cover all of them over a number of years.
It lacks the expert assistance of the CAG which is available to the Public Account Committee.
Its work is in the nature of a post- mortem.

Departmental Standing Committee:

There are 24 Departmentally Related Standing Committees covering under their jurisdiction all the Ministries/ Departments of the Government of India. These Committees have played an important role in not only making the executive accountable but also providing meaningful assistance to the executive through their comprehensive reports on important issues. Let us investigate the constitution, composition, functions and challenges in its functioning.
The need to constitute Subject Specific Committees or Department-related Parliamentary Standing Committees was felt for the last several years.
In 1989, in fact, 3 Standing Committees were constituted which dealt with Agriculture, Science and
Technology and Environment and Forests.
These Subject Committees were to examine the activities of the concerned Ministries/Departments and to report as to what economies, improvements in organisation, efficiency or administrative reforms consistent with the policy approved by Parliament might be effected. Apart from other functions, these Committees were to examine the Annual Reports and Plan Projects/activities of the concerned Ministries.
In 1993, it was finally decided to set up 17 Department-related Parliamentary Standing Committees each consisting of 15 members of Rajya Sabha and 30 from Lok Sabha to cover various Ministries/Departments of the Union Government to further strengthen the accountability of the Government to Parliament.

Composition

With the addition of 7 more Committees in July 2004, the number of Department-related Parliamentary Standing Committees was raised to 24 but with reduced membership of 10 members from Rajya Sabha and 21 members from Lok Sabha.

Jurisdiction:

Of the total Department-related Parliamentary Standing Committees, 8 were placed within the jurisdiction of the Chairman, Rajya Sabha and 16 within the jurisdiction of the Speaker, Lok Sabha.
The Chairmen of the first 8 Committees are appointed by Chairman, Rajya Sabha and the remaining 16 by the Speaker of Lok Sabha.
Rules 268 to 277 of the Rules of Procedure and Conduct of Business in the Conduct of States and Rules 331 C to 331 N of the Rules of Procedure and Conduct of Business in Lok Sabha govern the Constitution and functioning of these Committees.

DRPSC Makes Executive More Accountable By:

Considering the demands for grants of the relate a Ministries/ Departments and report thereon. The report shall not suggest anything of the nature cut motions.
Examining bill relating to Ministries/Departments, referred to Committee by Chairman or Speaker and report thereon.
Considering Annual Reports of Ministries/Departments and report thereon.
Considering National Basic Long Term Policy Documents presented to the Houses, if referred to the Committee by the Chairman or the Speaker and report on such policy documents.

Important Facts:

The Standing Committees do not consider the matters of day-to-day administration of the Ministries/Departments. Committees also do not generally consider the These matters which are under consideration by other Parliamentary Committees.
A Minister is not nominated as a member of the Committee. If a member, after his/her nomination to the Committee, is appointed a Minister, he/she ceases to be a member of the Committee from the date of such appointment

The procedure to be followed by each Standing Committee during the consideration and preparation of report on the Demands for Grants is as follows:

After the general discussion on the Budget in the House is over, the Houses shall be adjourned for a fixed period.
The Committees shall consider the Demands for Grants of the concerned Ministries during the aforesaid period.
The Committees shall make their report within the period and shall not ask for more time.
The Demands for Grants shall be considered by the House in the light of the reports of the Committees.
There shall be a separate report on the Demands for Grants of each Ministry.
Procedure relating to examination and reporting on Bills by DRSCS is as follows:-
- the Committee shall consider the general principles and clauses of the Bills referred to them and make report thereon.
- the Committee shall consider only such Bills introduced in either of the Houses as are referred to them by the Chairman, Rajya Sabha or the Speaker. as the case may be; and
- the Committee shall make report on the Bills in the given time.

Examples-Report of DRPSC:

Personnel, Public Grievances, Law and Justice identified the shortcomings and suggested measures to facilitate effective and efficient redressal of public grievances. Suggested to forward grievances to state governments received on CPGRAMS.
Various Bills such as Mediation Bill 2021, Wildlife Protection Amendment Bill And Anti-Doping bill has also been referred to respective DRPSCs.
In its Report on Electric & Hybrid Mobility- Prospects And Challenges In Automobile Industry- the committee considered suggestions from industry and stakeholders SIAM, ACMA, Automobile companies etc. suggested to scale up transition process to electric mobility.

Issue with Functioning:

Shorter tenure of 1 year is inadequate and even the Vice President in its Recommendations on Parliamentary Reforms have suggested for longer tenure of DRPSCS.
Delay in constitution of the committees by the government has been another concern.
Consideration of demand for grants within a fixed period after discussions on demand for grant.
Reports of the Committees have persuasive value and are not binding on the executive. This decreases the accountability of the executive.

Despite the concerns, DRPSCs have made the executive more accountable through its various reports which have helped the government to take suitable actions. Thus, the DRPSC makes the Parliament more effective in exercising control over and giving direction to the executive functioning and thereby making the executive more accountable.