The standing financial committee set up in 1921 led to the formation of the Estimates Committee. The first post-independence Estimates Committee was established in 1950, following the recommendation of then Finance Minister John Mathai.
Key details about the committee:
- Membership: Initially, the committee had 25 members, but in 1956, the membership was increased to 30. All members are from the Lok Sabha only, with no representation from the Rajya Sabha.
- Election of Members: Members are elected annually by the Lok Sabha from its own members using proportional representation and single transferable vote, ensuring representation from all parties. The term of office is one year.
- Exclusion of Ministers: Ministers cannot be committee members.
- Chairmanship: The Speaker appoints the chairman from amongst its members, typically from the ruling party.
Functions of the committee:
- Recommend economies, improvements in organization, efficiency, and administrative reform within the policy underlying the estimates.
- Suggest alternative policies for efficient and economical administration.
- Examine whether funds are well-utilized within the policy implied in the estimates.
- Propose the form in which estimates should be presented to Parliament.
Limitations of the committee:
- Examines budget estimates only after they are voted on by Parliament, not beforehand.
- Cannot question policies set by Parliament.
- Recommendations are advisory, not binding on ministries.
- Examines selected ministries and departments annually; coverage rotates over several years.
- Lacks expert assistance from the Comptroller and Auditor General (CAG) available to the Public Accounts Committee.
- Its work is retrospective in nature.
