Committee on Public Undertakings

The Committee on Public Undertakings examines the reports and accounts of Public Sector Undertakings (PSU.) The functions of this committee are mentioned in the fourth schedule of the Rules of Procedure and Conduct of Business in Lok Sabha. The topic ‘Committee on Public Undertakings’ is important for IAS Exam and its three stages – Prelims, Mains and Interview.

This article will mention in detail about the Committee on Public Undertakings, chairman of the Committee on Public Undertakings, its members and, its functions. These details are important for UPSC Mains GS-II paper and also for Political Science Optional papers. Aspirants can also download the notes for the same.

What is Committee on Public Undertakings?

Introduced in 1964, Committee on Public Undertakings is a type of Financial Committee which came into existence on the recommendations of Krishna Menon Committee. It is a one of the Parliamentary Committees(Standing Committee) in the Indian Constitution which was introduced to expand the parliamentary control over the PSUs.

The table briefly mentions everything about Committee on Public Undertakings, details of which will be given after it:

Committee on Public Undertakings
Year of Establishment	1964 (On the recommendation of Krishna Menon Committee)
Members	22
Election of Members	By Parliament every year with proportional representation by means of a single transferable vote
Term of Office	One Year
Chairman	Speaker appoints him/her from amongst the members Note: Member from Rajya Sabha is not chosen as Chairman
Function	To examine the reports and accounts of the Public Sector Undertakings

Questions from this section have been asked in the prelims stage, and in UPSC Mains examination.

Who are the members of the Committee on Public Undertakings?

This financial committee has 22 members. All the members are taken from the Indian Parliament. Out of 22 members, 15 are elected from Lok Sabha (Lower House) and 7 members are elected from Rajya Sabha (Upper House.) (The difference between Lok Sabha & Rajya Sabha can be read in the linked article.) When the committee was introduced in 1964, it has 15 members (10 from Lok Sabha and 5 from Rajya Sabha.)

Mode of the election of Committee on Public Undertakings’ 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 Committee on Public Undertakings:

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.

Note: Similar to Public Accounts Committee, a minister cannot be elected as the member of the Committee on Public Undertakings.

Chairman of the Committee on Public Undertakings:

Lok Sabha speaker has the authority to appoint the chairman of the committee. The Chairman of Committee on Public Undertakings is appointed from amongst the members of Lok Sabha. Hence, there is no representation of Rajya Sabha members as a chairman of the committee.

What are the functions of the Committee on Public Undertakings?

This standing committee performs various functions. They are given below:

Functions of Committee on Public Undertakings
S.No	Type of Functions
1.	Reports and Accounts of Public Sector Undertakings (PSUs) are examined by the committee
2.	Comptroller and Auditor General’s reports on PSUs is also taken up by this committee
3.	The committee checks upon the credibility of the business of public sector undertakings.
4.	It checks the efficiency and autonomy of PSUs
5.	It performs those functions related to PSUs that are given to it by the Lok Sabha speaker

There are a few functions that the committee on public undertakings is not to perform:

• The committee cannot examine any reports of government related to policies which are not concerned with PSUs.
• It has no role in matters of day-to-day administration.
• The committee also cannot take up reports of any such public sector undertakings which are established by a special statute and for which another machinery is responsible to report.

The given points are important for UPSC 2020 and aspirants shall keep in mind the facts about the committee to score in prelims and mains both.

Limitations of the Committee on Public Undertakings

The limitations of the Committee on Public Undertakings are given below:

1. There is a cap on the number of PSUs it can examine reports of. The committee cannot take upon reports of more than 10-12 PSUs in a year.
2. It only examines the reports. It has no role in deciding the functioning of PSUs. Hence, its work is only in the nature of a post-mortem.
3. The committee is not concerned with any technical matters of PSUs as there are no technical experts as members of the committee.
4. All the recommendations put forward for by the committee are advisory in nature and ministers are not bounded by any of those.

Public Accounts Committee 

Comptroller and Auditor General (CAG) of India submits three annual audit reports before President who lay it before each house of the Indian Parliament. These reports are examined by the Public Accounts Committee (PAC) which is a Financial Committee, a type of Standing Committee. Questions from this section are always expected in IAS Exam and its three stages – Prelims, Mains and Interview.

This article will mention in detail about the Public Accounts Committee, chairman of the Public Accounts Committee, its members and, its functions. Aspirants can also download the notes for PAC.

What is a Public Accounts Committee?

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

1. Audit report on appropriation accounts
2. Audit report on finance accounts
3. 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 the cases of waste, loss, corruption, extravagance, inefficiency and nugatory expenses.

The table briefly mentions everything about Public Accounts committee, details of which will be given after it:

Public Accounts Committee (PAC)
Year of Establishment	1921
Members	22
Election of Members	By Parliament every year with proportional representation by means of a single transferable vote Note: A minister cannot be elected
Term of Office	One year
Chairman	Speaker appoints him/her from amongst the members Note: Invariably from the Opposition Party since 1967
Function	To examine the annual audit reports of the Comptroller and Auditor General of India (CAG), which are laid before the Parliament by the President Note: CAG submits three reports – report on appropriation accounts, audit report on finance accounts and audit report on public undertakings

Questions from this section have been asked in the prelims stage, and in UPSC Mains examination.

Who are the 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 Lok Sabha (Lower House) and 7 members are elected from Rajya Sabha (Upper house). 

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.

Note: Similar to Estimates Committee, a minister cannot be elected as the member of the Public Accounts Committee

Chairman of the Public Accounts Committee:

Lok Sabha speaker is the authority to appoint the chairman of the committee. The Chairman of the Public Accounts Committee used to be appointed from the ruling party of the day until 1966-67 however; a convention later decided that the chairman of the committee will be appointed invariably from the opposition party.

What are the functions of the Public Accounts Committee?

This standing committee performs various functions. They are given below:

Functions of Public Accounts Committee
S.No	Type of Functions of PAC
1	It examines appropriation accounts and finance accounts of the central government which is laid before Lok Sabha
2	It scrutinizes the audit reports of CAG to satisfy itself that: The money that has been disbursed was legally available for the applied service or purpose The expenditure conforms to the authority that governs it Every re-appropriation has been made in accordance with the related rules
3	It examines the accounts of: State corporations Trading concerns and, Manufacturing projects Note: The audit report of these bodies are made by the CAG
4	It examines the accounts of: Autonomous Semi-autonomous bodies Note: The audit report of these bodies are made by the CAG
5	It keeps a check on the money spent on any service during a financial year. If the money is in excess of the amount granted by the Lok Sabha for that purpose, it goes on to its report.

Note: All the functions performed by the Public Accounts Committee are assisted by Comptroller and Auditor General.

The given points are important for UPSC 2020 and aspirants shall keep in mind the facts about the committee to score in prelims and mains both.

Limitations of Public Accounts Committee

Though the committee is empowered to act upon the audit reports of the CAG, and also to keep a tab on the union government’s expenses, there are still a few limitations on it which it should adhere to. The limitations of the Public Accounts Committee are given below:

1. Broadly, it cannot intervene in the questions of policy
2. It can keep a tab on the expenses only after they are incurred. It has no power to limit expenses.
3. It cannot intervene in matters of day-to-day administration.
4. Any recommendation that the committee makes is only advisory in nature. They can be ignored by the ministries.
5. It is not vested with the power of disallowance of expenditures by the departments.
6. Being only an executive body; it cannot issue an order. Only the Parliament can take a final decision on its findings.

Domicile law amended again: All jobs reserved for J&K domiciled residents

After its provisions on reserving only low-rung jobs for the people of J&K received widespread flak, the Ministry of Home Affairs Friday amended the J&K Domicile law to reserve all jobs for the domiciles of the Union Territory.

The latest amendment comes four days after the Centre had redefined the domicile of J&K.

In an order passed late Friday, the MHA amended section 5A of The Jammu and Kashmir Civil Services (Decentralization and Recruitment Act) replacing “a post carrying a pay scale of not more than Level-4 (25500)” with “any post”.

Besides in Section 8 of the Act, it added “is a domicile of Union Territory of Jammu and Kashmir” thus making it mandatory for a person to be a domicile of J&K to get any government job.

The new amendment comes close on the heels of a huge resentment brewing against the new law which had basically reserved only low rung jobs for the people of J&K.

On Mar 31, the MHA, through an order, had redefined the definition of domicile of Jammu and Kashmir through the Jammu and Kashmir Reorganisation (Adaptation of State Laws).

According to it, anyone who has resided in J&K for 15 years or has studied in the state for seven years, and appeared in either the Class 10 or the Class 12 examination, will be eligible for domicile certificates. This would allow them to apply for gazetted and non-gazetted government jobs.  

As per the MHA notification, jobs only up to the lowest level of non-gazetted rank were exclusively reserved for the domiciles, which was eventually amended to cover “all jobs” on Friday.

“Subject to the provisions of this Act, no person shall be eligible for appointment to a post carrying a pay scale of not more than Level-4 (25500) unless he is a domicile of the Union Territory of Jammu and Kashmir,” read section 5A of The Jammu and Kashmir Civil Services (Decentralization and Recruitment) Act.

Now after the amendment, the same section will be read as: “Subject to the provisions of this Act, no person shall be eligible for appointment to any post unless he is a domicile of the Union territory of Jammu and Kashmir.”

Not just people in Kashmir and Jammu, the new domicile law had upset the Jammu unit of BJP too who had flagged their concern with the party leadership in Delhi including Home Minister Amit Shah.

It was the same clause in which only low-rung jobs were reserved for locals that had got the BJP wing worried, as most of their supporters in Jammu and the public in general found it “a cause of worry”.

In fact, BJP general secretary Ram Madhav, as per a report in The Hindu Friday morning, considered the concerns of the Jammu BJP unit valid.

“There were issues that the Jammu unit of the party had flagged, and that their fears are valid,” Madhav was quoted telling The Hindu.

He also confirmed that Shah had been also been apprised of the concerns of the people of Jammu and he had assured that he would look into it.

“There are some issues with regard to the domicile notification that have been flagged, especially with regards to reserving jobs for locals, and to an extent these fears are valid,” Madhav had said.

J&K Apni Party president and former minister Altaf Bukhari too was in talks with top BJP leadership expressing his disappointment with the new law, especially after his last month meeting with PM Narendra Modi in which he was assured safeguard of domicile rights.

A comparative study of the Indian, UK and the US Constitution

A constitution is a set of rules that govern a country. Some countries have a formal written constitution in which the structure of government is well defined, and the respective powers of the country and the states are written in one single document, and some have unwritten constitutions which mean there is no formal written constitution. Their constitutional rules are originated and based on a number of sources.

For example; Britain sources its constitution from several important statutes, or laws, as well as principles decided in legal cases and conventions. New Zealand and Israel are two other countries that do not have formal written constitutions.

Listed below are some comparisons in the study of Indian, UK and the US constitution.

India	UK	US
Written Constitution (Lengthiest in the world)	Unwritten Constitution (based on conventions and political traditions)	Written Constitution (shortest constitutions amongst major world powers)
The process of amendment: Amending the Constitution is a combination of rigid and flexible process. It Can be amended by a Simple Majority, Special Majority or ratification by more than half of the states. (Basic structure cannot be amended)	The process of amendment: Constitution amending procedure is flexible can be amended or repealed by a Simple Majority. (Since no distinction is made between constitutional law and ordinary law. Both are treated alike)	The process of amendment: The process is very rigid (2/3rd of the States should pass a resolution to this effect. Congress will call the convention. In the convention, it has to be ratified by 3/4th of the States)
Center  + State: The interdependence of Centre and state govt. Neither of them is independent of the other. The Central government interferes with the functions of state governments. The head of state is the president while the actual head of the government is the prime minister.	Unitary: The British constitution has a unitary character as opposed to a federal one. All powers of the government are vested in the British Parliament, which is a sovereign body.	Federal: Dual Federation (USA) – both the Centre and state are completely independent. They are complete governments. the Federal Government and States have their Constitutions and do not interfere in each other’s functions
Government: India has adopted a Parliamentary form of government. Both President and Governor exercise the power of ordinance making under the constitution, thus performing legislative functions.	Government: Britain has a parliamentary form of government. The real functionaries are Ministers, who belong to the majority party in the Parliament and remain in office as long as they retain its confidence. (The UK is the self-governing country, but the head of the state is monarch)	Government: America has adopted a Presidential form of government. The President is both the head of the state as well as its chief executive.
Term: the Indian President and Prime Minister holds the office for 5 years (can be extended)	Term: The British prime minister holds the office for 4 years(can be extended)	Term: The term of the American President is 4 years (fixed-term)
Separation of Powers: Parliament is entrusted to make the law; Executive is entrusted with the duty of implementation of the law, Judiciary to implement the law.	Separation of Powers: The Lord Chancellor is the head of the judiciary, Chairman of the House of Commons (Legislature), a member of the executive and often a member of the cabinet. The House of Commons ultimately controls the Legislative. The judiciary is independent, but the judges of the superior courts can be removed on an address from both Houses of Parliament.	Separation of Powers: Art. I vest legislative power in the Congress; Art. II vests executive power in the President and Art. III vests judicial power in the Supreme Court.
Citizenship: India has one constitution and concept of single citizenship for every citizen of the country.	Citizenship: The UK constitution has not been codified in one document. General constitutional principles run through the law. Central statutes have been recognised as holding "constitutional" value.	Citizenship: America has adopted the doctrine of the dual ship in respect of its Constitution and citizenship. It has two Constitutions, one, for America as a whole and another for each State.
The sovereignty of power: The Parliament can modify the major portion of the Constitution through its constituent power. The Supreme Court can declare the parliamentary laws as unconstitutional through its power of judicial review.	The sovereignty of power: The British Parliament is the only the legislative body in the country with unfettered power of legislation. It can make, amend or repeal any law. The courts have no power to question the validity of the laws passed by the British Parliament. The British Parliament may amend the constitution on its authority, like an ordinary law

Public policy

Public policy is a set of decisions by governments and other political actors to influence, change, or frame a problem or issue that has been recognized as in the political realm by policy makers and/or the wider public. Scientific approaches toward public policies have proliferated over the postwar period as the size and scope of government interventions have continuously expanded. The study of public policy includes policy analysis or policy science, which identifies effective policy measures, policy instruments, which a government can employ, and the policy process, which analyses how a government comes to 

Nature of Public Policy

We have seen that public policies are the collective actions of the government. Public policies will include laws, rules, regulations, judgments, case studies, government programs etc. Now public policies and their nature are basically of three types – restrictive, regulatory and facilitating policies. Let’s take a look.

1] Restrictive Policies

These policies curtail benefits for certain type of transactions or situations. One example is when the government imposes customs duties. This is done with the view of restricting imports into the country. The government wishes to bolster domestic production and trading and promote exports. So they will impose customs duties on imports to discourage heavy importing. This is a restrictive policy.

2] Regulatory Policies and Practices

These policies and practices aim to regulate the different sectors of an economy. These regulations keep the sector in check and ensure that there are no deviations from the government policies and plans. Take for example the banking sector of the country. It is strictly regulated by the RBI in accordance with the policies of the government. Similarly, the RBI also governs the money market, SEBI governs the stock market etc.

3] Facilitating Policies

The government often has many banks, institutions etc that facilitate and grow businesses in an economy. These bodies help implement policies to facilitate businesses, hence facilitating policies. Take for example the NABARD that facilitates rural credit policies. Another example is the EXIM Bank that implements policies to increase the import-export industry in our country.

Public Policy Process

Public Policy Process

The public policy process is a dynamic and interactive process. It is also a continuous process, not a one-time event. In most cases, public policy lays down general directives and rules. The actual details of the policy along with its implementation techniques are in the sub-policies. So the actual policy is more generic and dynamic.

In India passing a bill to make it into a law is a long and complex process. Firstly the law has to go through two houses, the Lok Sabha and the Rajya Sabha. First, the Standing Committee will review the bill. Then the concerned minister will introduce it in the house. If it passes the vote, then it is sent to the other house. Once both houses pass the bill it is again sent for review to the Ministry for Law. Finally, when the President asserts, the bill becomes a Law.