Indian Polity

Choose the Correct Answer

Correct Answer : Option c

Explanation
● Statement 1 is correct: One of the main functions of the Public Accounts Committee (PAC) is to examine the appropriation accounts of the Union government. The appropriation accounts compare the actual expenditure with the amounts sanctioned by Parliament through the Appropriation Act. The PAC also examines the finance accounts showing the annual receipts and disbursements of the Union Government.

● Statement 2 is correct: The PAC also examines the accounts of state corporations, trading concerns, and manufacturing projects, along with the audit reports of the Comptroller and Auditor General (CAG) on them (except those public undertakings which are assigned to the Committee on Public Undertakings).

● Statement 3 is correct: The PAC considers the report of the CAG related to the audit of any receipt and examines the accounts of stores and stocks. This is a critical function to ensure accountability in the government’s financial management.

● Statement 4 is incorrect: The PAC's primary function is to examine the financial accounts and examine government expenditures. It does not review national policies or make recommendations on the taxation system. These issues fall outside the scope of the PAC's duties.