The Parliamentary Standing Committee on Finance (SCOF) is a permanent Department Related Standing Committee (DRSC), an institutional concept within the Parliament of India, established for legislative oversight. It was formally set up in April 1993, following the adoption of the Reports of Rules Committees of the 10th Lok Sabha on March 29, 1993. The creation of the DRSCs in 1993 was intended to improve parliamentary efficiency and ensure detailed scrutiny of government finances and legislation, which the full Parliament could not manage due to its workload.
The Committee's mechanism is governed by the Rules of Procedure and Conduct of Business in Lok Sabha, specifically Rule 331 C through N. It consists of 31 members, with 21 nominated by the Speaker from the Lok Sabha and 10 nominated by the Chairman from the Rajya Sabha, for a tenure of one year. A key provision is that a Minister is not eligible to be a member. The Committee's functions include considering the Demands for Grants of its concerned Ministries, examining Bills referred to it, and scrutinizing annual reports. Its reports are advisory and have persuasive value but are not binding on the government.
The SCOF connects directly to the executive by exercising oversight over the Ministry of Finance (MoF), the Ministry of Corporate Affairs, the Ministry of Statistics and Programme Implementation, and the NITI Aayog. Its authority is drawn from Article 105 and Article 118 of the Indian Constitution, which relate to the powers and procedures of Parliament and its committees. A significant change occurred in July 2004 during the 14th Lok Sabha, when the Committee's membership was reduced from 45 members to the current 31 members, while its core function of departmental oversight remained the same.