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Explain the structure of the Parliamentary Committee system. How far has the financial committee helped in the Institutionalisation of the Indian Parliament? | UPSC 2023 General Studies Paper 2 Mains PYQ


Explain the structure of the Parliamentary Committee system. How far has the financial committee helped in the Institutionalization of the Indian Parliament? 

(UPSC 2023 General Studies Paper 2 (Main) Exam, Answer in 150 words)


The Parliamentary Committee is a committee that includes parliamentary members, which is made by Parliament for governance, law, and policy implementation.

For example, the Estimates Committee of Parliament scrutinizes the Budget.

The Parliamentary Committee System in India plays a crucial role in scrutinizing and overseeing various aspects of governance and policy formulation.

Structure of the Parliamentary Committee System:

The following is the structure of the Parliamentary Committee:

  • Nature of Parliamentary Committee.
  • Composition
  • Chairperson

Nature of Parliamentary Committee:

Parliamentary Committee are mainly two types:

Permanent Committee:

The Permanent Committee of Parliament is also known as the Standing Committee. For example. Public Accounts Committee ( PAC), Estimates Committee, Committee on Public Undertaking, and Departmental Standing Committee.

Ad hoc Committees:

Ad hoc Committees are temporary in nature, they are formed for specific purposes. Inquiry committees and Advisory Committees are examples of Ad hoc Committees.


Parliamentary Committees are generally composed of members from both houses of Parliament. For example, the Public Account Committee is comprised of 22 members, 15 from Lok Sabha and 7 from Rajya Sabha.


Each committee has a chairperson, either appointed by the Speaker/Chairperson or they elect themselves.

Functioning of Financial Committee:

Financial Committees mainly deal with the examination of government expenditure, financial policies, and related matters. There are three major Financial committees in the Indian Parliament, namely:

Public Account Committees ( PAC):

It examines the audit reports of the Comptroller and Auditor General ( CAG) and ensures accountability and transparency in financial matters.

Committee on Public Undertakings:

It examines the performance of Public Enterprises, ensuring efficiency, and effectiveness.

Estimate Committee:

It examines the estimates in the budget and suggests alternative policies to bring about efficiency.

Role of the Financial Committee in Institutionalizing the Indian Parliament:

Expenditure Scrutiny:

Financial Committees like the Public Accounts Committee, scrutinize government expenditure, ensuring that public funds are spent efficiently and under established norms.

Accountability and Transparency:

Financial committees like Public Account Committees ( PAC) examine the audit reports. It enhances accountability and transparency in government financial transactions.

Policy Evaluation:

Financial committees like Estimate Committee, assess government policies, programs, and projects, providing valuable insights and recommendations for improvement.

Reports and Recommendations:

Financial Committees submit reports to parliament, detailing their findings and recommendations. These reports are important documents that guide parliamentary debates and discussions on financial matters.

In summary, the financial committees that come within the Parliamentary Committees System. Financial committees like the Public Accounts Committee, and the Committee on Public Undertakings, significantly contribute to the institutionalization of the Indian Parliament. By ensuring fiscal accountability, transparency, and policy evaluation, these committees play a vital role in enhancing the effectiveness of parliamentary functions related to financial matters.

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