PUBLIC ACCOUNTS COMMITTEE

The Public Accounts Committee (PAC) directs the central government to review outdated toll tax rules. It notes exponential traffic increases, non-compliance by concessionaires, persistent toll plaza jams despite FASTags, and privacy concerns with new ANPR technology. The PAC examines government spending and enforces accountability, ensuring efficient and lawful fund usage.

Last Updated on 15th February, 2025
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The Public Accounts Committee (PAC) has directed the central government to review the existing rules governing toll taxes on National Highways (NH).

Key Issues Highlighted by the PAC

Outdated Toll Tax Rules

The current toll tax system is based on the National Highways Fee Rules, 2008, which prescribe a base rate of fee per kilometre.

The PAC noted that vehicular traffic on highways has increased exponentially since 2008, leading to higher revenue collection.

The committee argued that the base rates should be lowered to reflect the increased number of vehicles and higher revenue.

Non-Compliance by Concessionaires

Many private concessionaires responsible for toll collection and highway maintenance are not fulfilling their contractual obligations.

Issues flagged include: Poor maintenance of roads. Lack of passenger amenities such as rest stops and medical assistance during accidents.

Traffic Jams at Toll Plazas

Despite the introduction of FASTags to streamline toll collection, long traffic jams at toll plazas remain a persistent problem.

Privacy Concerns with New Technologies

The government is piloting Automatic Number Plate Recognition (ANPR) systems on highways like Panipat-Jalandhar, Surat-Bharuch, and the Dwarka Expressway to enable barrier-free toll collection. However, several PAC members raised concerns about potential privacy violations due to the use of ANPR technology.

About Public Accounts Committee (PAC)

It was established in 1921 during the British colonial era.  Initially, the Finance Member of the Viceroy’s Executive Council served as its Chairperson, and the Finance Department (later Ministry of Finance) handled its secretarial functions.

After India adopted its Constitution, the PAC became a Parliamentary Committee under the control of the Speaker of the Lok Sabha.

Its secretarial functions were transferred to the Parliament Secretariat (now Lok Sabha Secretariat).

Composition

  • The PAC consists of not more than 22 members:
    • 15 members are elected by the Lok Sabha.
    • Up to 7 members are elected by the Rajya Sabha.
  • Members are elected annually through the principle of proportional representation by means of a single transferable vote.

Chairperson

  • The Speaker of the Lok Sabha appoints the Chairperson from among the PAC members belonging to the Lok Sabha.
  • Since 1967-68, the Speaker has consistently appointed a member of the Opposition as the Chairperson, ensuring bipartisan oversight.

Eligibility

  • A Minister cannot be a member of the PAC.
  • If a member is appointed as a Minister after being elected to the PAC, they cease to be a member from the date of their appointment.

Functions of the Public Accounts Committee

Examination of Accounts

  • Appropriation Accounts show how funds granted by Parliament have been spent by the government.
  • Finance Accounts provide an overview of the government’s annual financial performance.
  • Other Accounts: The Committee may examine any other accounts laid before Parliament as it deems fit.

Excess Expenditure

  • If the government spends more or less than the amount sanctioned by Parliament, the PAC examines the reasons for such deviations.
  • It investigates cases of excess expenditure and makes recommendations to prevent future occurrences.

Must Read Articles: 

REVIEW OF REGULATORY BODIES

PARLIAMENTARY COMMITTEES

Source: 

THE HINDU

PRACTICE QUESTION

Q. Consider the following statements about Public Accounts Committee (PAC) membership:

1. A Minister can be elected as a PAC member.

2. The Chairperson is always from the ruling party.

3.  Members serve a fixed 5-year term.

 How many of the above statements are correct?

A) Only one

B) Only two

C) All three 

D) None

Answer: D

Explanation:

Statement 1 is incorrect: According to the rules governing the Public Accounts Committee (PAC), a Minister cannot be elected as a member of the PAC.

Statement 2 is incorrect: The Chairperson of the PAC is not always from the ruling party. Since 1967-68, it has been a convention that the Speaker of the Lok Sabha appoints a member of the Opposition as the Chairperson of the PAC.

Statement 3 is incorrect:  The term of office for PAC members is one year, and members are elected annually by the Lok Sabha and Rajya Sabha.

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