The Public Accounts Committee (PAC) is a committee of the legislature that examines CAG reports after they are laid, questions the executive on selected paragraphs, and makes recommendations. The department then writes action taken notes, and the audit office checks them. A paragraph is closed only after the committee and audit are satisfied that the action is adequate.
Last reviewed: 17 October 2026. Facts checked. We opened a cag.gov.in page on the Public Accounts Committee (the page says it was last updated on 31 July 2020 and says nothing about hearings or action taken), a Madhya Pradesh Accountant General page on cag.gov.in summarising the Regulations on Audit and Accounts, 2007, and a Tamil Nadu Accountant General FAQ page. We searched for the 1960 six-week instruction and for time limits on action taken notes. We could not open the Lok Sabha or Rajya Sabha rule books, so committee procedure beyond what these pages say is not covered. Time limits for notes differ by State and are not stated here.
What the PAC is
According to the CAG's page, the PAC has up to 22 members: up to 15 from the Lok Sabha and up to 7 from the Rajya Sabha. Members are chosen each year by proportional representation by single transferable vote, and the term is one year. Ministers cannot be members. The Lok Sabha Speaker appoints the chair.
Its main task is to check whether money granted by Parliament was spent within the scope of the approved demand. The CAG assists the committee. States have comparable committees, and public undertakings are examined by a Committee on Public Undertakings (COPU).
Where audit paragraphs come from
Audit paragraphs reach the committee through CAG reports. Before a paragraph goes into a report, the department gets six weeks to reply to the draft. That step is where many paragraphs are settled before tabling: a CAG page notes that a satisfactory reply can lead to the paragraph being left out.
What happens in the committee
A CAG FAQ page says the committees choose the most critical findings for hearings, where the executive can be questioned. The CAG's office gives technical help, checks the departments' submissions, and verifies facts and figures in the committees' draft reports.
The committee then issues recommendations. We have not summarised the committee's rules of procedure, because we did not open them.
The department's action taken note
After tabling, the department Secretary prepares a self-explanatory action taken note (ATN). The Madhya Pradesh page says it must address specified points, including:
- the causes of the lapses,
- responsibility,
- recoveries, and
- remedial steps.
If asked, the Accountant General vets the note within one month. The Government's response to committee recommendations also goes to the Accountant General for vetting.
Timeline
| Step | Who | Time limit (where we found one) |
|---|---|---|
| Reply to draft paragraph | Department | Six weeks |
| Committee hearing | PAC or COPU | Not stated in sources we opened |
| Action taken note | Department | Differs by State; not stated here |
| Vetting of note | Accountant General | Within one month, if requested |
What "settled" means
A paragraph can be dealt with in several ways:
- Dropped before tabling. The department's reply satisfies audit.
- Discussed and recommendations made. The committee examines it and recommends action.
- Action taken accepted. Audit vets the note and finds the steps adequate.
- Not yet accepted. Where action is incomplete, the note is not a final answer. The sources we opened do not spell out closure rules.
Terms such as "settled" and "closed" vary between States and the Union, so check the manual your audit office uses.
Delays
The Madhya Pradesh page says the Accountant General reports late replies and notes to the Chief Secretary and may mention them in the audit report. The sources do not give statistics on delays, and we do not cite any.
For finance teams and auditees
- Keep a register of draft paragraphs, due dates and replies.
- Write replies that answer facts, comments, recommendations and remedial action, as the Regulations ask.
- Keep proof of recoveries and corrective steps with the file.
- Treat the committee's recommendations as the checklist for the note.
For the wider context of audit types, see government audit and the three types.
Frequently Asked Questions
What is the Public Accounts Committee?
A legislative committee that examines CAG audit reports and whether money granted by the legislature was spent within the approved demand.
How many members does the Lok Sabha PAC have?
Up to 22 members: up to 15 from the Lok Sabha and up to 7 from the Rajya Sabha, according to the CAG's page on the committee.
What is an action taken note?
A note by the department stating causes, responsibility, recoveries and remedial steps after a report is tabled.
Does the CAG sit on the PAC?
No. The CAG assists the committee but is not a member. Members come from the Houses.
Who closes an audit paragraph?
The arrangements differ, but the department acts, the Accountant General vets the note, and the committee's recommendations guide what counts as adequate action.
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