Question

Q. With reference to “Financial Committees” of the Indian Parliament, consider the following statements.

Which of the above statements is/are correct?

• A.
  1 and 2 only
• B.
  2 only
• C.
  1 and 3 only
• D.
  3 only

Answer 1

The correct option is D

3 only
Explanation:

Financial Committees are a kind of Standing Committees (permanent in nature) that assist the Parliament in discharging its duties.
There are 3 Financial committees. The differences and similarities among these committees are given below.

	Public Accounts Committee (PAC)	Estimates Committee	Committee on Public Undertakings
Work	Examine the annual audit reports of the CAG which are laid before the Parliament by the President.	Examine the estimates included in the budget and suggest ‘economies’in public expenditure.	Examine the reports and accounts of Public undertakings
Members	22 members (15 - Lok Sabha and 7 - Rajya Sabha). Elected by the Parliament every year from amongst its own members according to the principle of proportional representation by means of the single transferable vote A minister cannot be elected as a member of the committee	30 members (All are from Lok Sabha only.) Elected by the Lok Sabha every year from amongst its own members, according to the principles of proportional representation by means of a single transferable vote. A minister cannot be elected as a member of the committee.	22 members (15 -Lok Sabha and 7 - Rajya Sabha). Elected by the Parliament every year from amongst its own members according to the principle of proportional representation by means of a single transferable vote. A minister cannot be elected as a member of the committee.
Chairman	Appointed by the Speaker from amongst its members.	Appointed by the Speaker from amongst its members	Appointed by the Speaker from amongst its members who are drawn from the Lok Sabha only.
Nature of Recommendations	Advisory and not binding on the ministries.	Advisory and not binding on the ministries.	Advisory and not binding on the ministries.

Statement 1 is incorrect.
It is clear from the above table that only in the case of the Estimates Committee, members are from the Lok Sabha and in the remaining committees the members are from both the houses.

Statement 2 is incorrect.
Since ministers can not be a member of the financial committees, the Prime Minister can not be appointed as chairman.

Statement 3 is correct.
Yes, the recommendations of all the 3 financial committees are not binding on the ministries.