The Finance Committee was formed in 1992. Until 1994 it was known as the Budget and Tax Committee. The Finance Committee deliberates the state budget, and the Bills relating to taxation, insurance and banking, and resolves the problems and issues relating to these areas at the legislative level.

As the financial and tax system is subject to constant improvement, most of the Bills referred to the Committee are amendments to the existing Acts.
The Committee cooperates with the Ministry of Finance, the Tax and Customs Board, Eesti Pank, the State Audit Office, and also with other institutions and interest groups affected by the Bills in proceeding, and the committees performing similar functions in the parliaments of other countries.