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PolityFree till Sep 9

Parliamentary Committees: PAC, Estimates, DRSCs, and the Ones UPSC Loves

May 28, 2026
7 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]

  1. 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).

  2. 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).

  3. 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.

  4. 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hook: The Parliamentary Standing Committee on Finance examined the Jan Vishwas Bill, the Data Protection Bill (later withdrawn and revised), and multiple budget demands.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.

  5. Mains hinge: "Parliamentary committees strengthen legislative oversight but their recommendations are not binding on the government." Examine.


Core Concept

Parliamentary committees are of two types:

  1. Standing Committees (permanent, reconstituted annually)
  2. Ad Hoc Committees (formed for specific purpose, dissolved after)

Three Financial Committees

Public Accounts Committee (PAC)

  • Members: 22 (15 Lok Sabha + 7 Rajya Sabha)
  • Chairperson: Elected from Lok Sabha - convention is Leader of Opposition or senior opposition member
  • Function: Examines appropriation accounts and CAG's audit reports. Post-mortem function - reviews how money was spent.
  • Examines: Whether money was spent as authorised by Parliament, within sanctioned amounts, for the purpose voted
  • Does NOT examine policy (government can refuse to provide certain info on policy grounds)

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  • 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
    • Functions:
      1. Examine demands for grants of ministries
      2. Examine bills referred by the Speaker/Chairman
      3. Consider policy documents, annual reports, long-term plans
      4. Examine matters of national importance in the sector
    • NOT permanent in strict sense - reconstituted each year

    Key DRSCs (frequently tested):

    • Finance Committee (covers Finance Ministry, RBI, SEBI oversight)
    • Home Affairs Committee
    • External Affairs Committee
    • Defence Committee
    • Health and Family Welfare

    Ad Hoc Committees

    Formed for specific purposes:

    • Select Committee: Examines a particular bill referred to it; members from one House only (LS or RS)
    • Joint Committee: Like Select Committee but members from BOTH Houses
    • Joint Parliamentary Committee (JPC): Special high-profile investigation committees (e.g., Bofors, 2G Spectrum, Stock Market Scam)
    • Dissolved once task completed

    Key Facts

    • 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

    YearStageWhat was tested
    2024PrelimsWhich committee examines CAG reports on government expenditure? PAC
    2023PrelimsEstimates Committee has members from which Houses? Lok Sabha only
    2022PrelimsChairperson of PAC is elected from? Lok Sabha; by convention, from opposition
    2021PrelimsDRSCs were first constituted in which year? 1993
    2020Mains"Parliamentary committees strengthen executive accountability." Examine with reference to PAC and DRSCs.
    2019PrelimsCommittee 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

    1. "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.
    2. "Estimates Committee examines money already spent": No. It examines budget ESTIMATES - future spending. PAC examines past (appropriation accounts).
    3. "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.
    4. "JPC is a standing committee": No. JPC is ad hoc - formed for a specific investigation.
    5. "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).