DCMS Chair Julian Knight has written to the National Audit Office (NAO) calling for an investigation into nationwide festival Unboxed: Creativity in the UK.
In his letter to the spending watchdog, Knight called the £120m festival an "excessive waste of money during a cost of living crisis" and a "fiasco in the making".
Speaking to the BBC, he added that "questions need to be answered about how this was allowed to happen".
"I'm calling for an NAO investigation to ensure we see what has happened, why it is that this money has been spent in this way and then we also learn the lessons for the future," Knight said.
"We saw the warning signs… and the fact is this has been potentially a monumental waste of money and has had little impact in the country as a whole."
Unboxed’s Chief Creative Officer Martin Green told the BBC Unboxed is “bold and groundbreaking” and value for money.
He added the festival had done “exactly what the government asked us to do”.
According to a recent investigation, the festival has been attracting only a fraction of its target audience numbers.
Official audience figures are expected to be released next month.