The Estimates Committee of Parliament was constituted for the first time in:

The Estimates Committee was first constituted in 1950, on the recommendation of John Mathai, the then Finance Minister.

Background:

• A Standing Finance Committee had existed before independence, from 1921, to examine estimates.
• After independence, a separate Estimates Committee was created to examine government spending in more detail.

Composition:

• Originally it had 25 members, which was raised to 30 in 1956.
• All 30 members are from the Lok Sabha; the Rajya Sabha has no representation in this committee.
• Members are elected by the Lok Sabha every year from among its members, by means of the single transferable vote.
• The chairman is appointed by the Speaker from among the members and is always from the ruling party.

Functions:

• To report what economies, improvements in organisation, efficiency or administrative reform can be made, consistent with the policy underlying the estimates.
• To suggest alternative policies to bring about efficiency and economy in administration.
• To examine whether the money is well laid out within the limits of the policy implied in the estimates.
• To suggest the form in which the estimates should be presented to Parliament.
• It is described as a "continuous economy committee".

Limitations:

• It examines the Budget estimates only after they have been voted on by Parliament, not before.
• It cannot question the policy laid down by Parliament.
• Its recommendations are advisory and not binding.
• It examines only selected ministries and departments each year, not the whole Budget.
• It works in the absence of an expert agency like an auditor.

Financial committees of Parliament:

• Public Accounts Committee: the oldest, set up in 1921.
• Estimates Committee: set up in 1950.
• Committee on Public Undertakings: set up in 1964.

Importance:

• It is the largest committee of Parliament.
• Departmentally related standing committees, created in 1993, have taken over part of its work.

Why not the other options?

• ✗1921 is the year the Public Accounts Committee was first set up.
• ✗1947 is the year of independence.
• ✗1964 is the year the Committee on Public Undertakings was set up.