Parliamentary Committees: PAC, Estimates, DRSCs, and the Ones UPSC Loves
May 28, 20267 min read
India's Parliament sits for barely 60–70 days a year. Bills get passed in hours. Budgets are approved in 20 minutes. The real scrutiny happens in committees — smaller groups of MPs who examine bills clause by clause, question ministers, audit government spending, and investigate public enterprises. The three financial committees (PAC, Estimates, Public Undertakings) are constitutionally significant and regularly tested by UPSC.
[TOPIC CLASSIFICATION]
Topic type: Constitutional Law / Parliament / Polity
PYQ frequency: High. 2–3 questions per year combined.
Exam stage relevance: Prelims + Mains
Primary GS Paper: GS 2
[EXAMINER REASONING]
Trap: Which committee examines the Comptroller and Auditor General's (CAG) reports? Public Accounts Committee (PAC), NOT the Estimates Committee. Estimates Committee examines budget estimates (future spending); PAC examines appropriation accounts (past spending audited by CAG).
Most confused: PAC membership composition — Lok Sabha members only, or Rajya Sabha too? Both. PAC has members from both Houses (22 total: 15 LS + 7 RS). BUT Estimates Committee is only Lok Sabha (30 members).
Key anchor: DRSCs (Departmentally Related Standing Committees) cover all ministries across 24 committees. Each has members from both Houses. They examine demands for grants and bills referred to them.
Current affairs hook: The Parliamentary Standing Committee on Finance examined the Jan Vishwas Bill, the Data Protection Bill (later withdrawn and revised), and multiple budget demands. These committees are increasingly active in pre-legislative scrutiny.
Mains hinge: "Parliamentary committees strengthen legislative oversight but their recommendations are not binding on the government." Examine.
Municipal Finance and Urban Local Bodies: The Crisis of City Governance
Urban local bodies (ULBs) contribute 65% of India's GDP but receive only ~1% of GDP in intergovernmental transfers. The 74th Constitutional Amendment (1992) created a framework for municipal governance — but 34 years later, urban local bodies lack functional autonomy, financial independence, and democratic vitality. The fiscal gap is estimated at ₹3.5 lakh crore annually.
Reports to: Lok Sabha
Estimates Committee
Members: 30 (all from Lok Sabha only — Rajya Sabha NOT included)
Chairperson: Elected from members (usually majority party)
Function: Examines budget estimates before they are voted. Forward-looking — suggests economies and reforms in organisation/policy.
Examines: Whether estimates are within policy, suggests alternative policies, efficiency improvements
Cannot question the policy itself
Reports to: Lok Sabha
Committee on Public Undertakings (CPU)
Members: 22 (15 Lok Sabha + 7 Rajya Sabha)
Function: Examines working and accounts of Public Sector Undertakings (PSUs/CPSEs). Reviews CAG reports on PSUs.
Examines: Whether PSU is working efficiently, financial performance, whether government policy is being followed
Departmentally Related Standing Committees (DRSCs)
Created: 1993 (8 committees), expanded to 17 in 2004, currently 24 committees
Cover: All central government ministries and departments
Members: Each has ~31 members — MPs from both Lok Sabha and Rajya Sabha
PAC: 22 members (15 LS + 7 RS); examines CAG reports; post-mortem function; chair = opposition
Estimates: 30 members (LS only); forward-looking budget scrutiny
CPU: 22 members (15 LS + 7 RS); PSU financial scrutiny
DRSCs: 24 committees covering all ministries; mixed LS + RS membership
Business Advisory Committee: Plans legislative business of the House
Rules Committee: Examines and reports on matters relating to rules of the House
Privileges Committee: Examines privileges cases
Committee on Petitions: Examines petitions submitted to Parliament
Previous Year Questions
Year
Stage
What was tested
2024
Prelims
Which committee examines CAG reports on government expenditure? PAC
2023
Prelims
Estimates Committee has members from which Houses? Lok Sabha only
2022
Prelims
Chairperson of PAC is elected from? Lok Sabha; by convention, from opposition
2021
Prelims
DRSCs were first constituted in which year? 1993
2020
Mains
"Parliamentary committees strengthen executive accountability." Examine with reference to PAC and DRSCs.
2019
Prelims
Committee on Public Undertakings examines the working of? PSUs / CPSEs
Statement Elimination Guide
Correct: "The PAC examines the appropriation accounts and CAG reports, performing a post-expenditure audit function."
False: "The Estimates Committee examines CAG audit reports."
Trap: "PAC is composed only of Lok Sabha members." (False. PAC has 15 LS + 7 RS = 22 total. Estimates Committee is LS only.)
Correct: "DRSCs examine demands for grants and bills referred to them, covering all central government ministries."
False: "DRSCs can only examine bills, not examine government spending."
Trap: "DRSCs' recommendations are binding on the government." (False. Recommendations are advisory — the government is not legally required to accept them, though political pressure often leads to compliance.)
Correct: "A Joint Parliamentary Committee (JPC) is an ad hoc committee formed for a specific investigation, with members from both Houses."
False: "A JPC is a permanent standing committee of Parliament."
Current Affairs Hook
Parliamentary committees have been increasingly active in examining major legislation before passage. The Joint Committee on the Personal Data Protection Bill (2019–2021) submitted a comprehensive report suggesting over 80 amendments — the government eventually withdrew the original bill and introduced the Digital Personal Data Protection Act (2023) with significant changes.
DRSCs have also been bypassed increasingly — many major bills (Farm Laws 2020, CAA 2019, Article 370 abrogation) were passed without referral to committees. Parliamentary reformers argue that mandatory committee referral of all bills would improve legislative quality. The Speaker's discretion to refer or not refer bills to committees remains a contested governance issue.
Common Mistakes
"PAC is the most powerful parliamentary committee": It is important but its recommendations are not binding. The government is not obligated to accept PAC's findings.
"Estimates Committee examines money already spent": No. It examines budget ESTIMATES — future spending. PAC examines past (appropriation accounts).
"All committees have equal membership from LS and RS": No. Estimates Committee has only LS members. PAC and CPU have both in 15:7 ratio.
"JPC is a standing committee": No. JPC is ad hoc — formed for a specific investigation.
"DRSC recommendations are binding on ministries": No. Advisory only, though they carry significant political weight.
Revision Snapshot
Parliamentary committees: Standing (permanent) and Ad hoc (temporary). Three financial committees: PAC (22 members: 15 LS + 7 RS; chair = opposition; examines CAG reports, post-expenditure), Estimates Committee (30 LS members only; forward-looking budget scrutiny), CPU (22 members: 15 LS + 7 RS; PSU scrutiny). DRSCs: 24 committees covering all ministries; mixed LS + RS; examine demands for grants and bills; advisory, not binding. Ad hoc: Select (one House), Joint Committee (both Houses), JPC (high-profile investigation). All committee recommendations are advisory — government not bound. PAC chair: opposition by convention (since 1967).