The Finance Department has opposed a proposal to grant politicians the authority to approve or reject consultancy contracts worth more than $2 million, arguing it risked ministerial influence over government spending and undermined public servants.

The department relayed its concerns in a submission to a draft bill moved to establish a joint parliamentary committee to scrutinise government spending on consultancy firms.

An oversight committee was a key recommendation of a major inquiry last year that called for a significant overhaul to the sector, which the Albanese government has yet to respond to.

In a submission to the draft bill, Finance said giving parliamentarians the authority to approve or reject contracts where not required by law went against federal rules and undermined

See Full Page