Madhya Pradesh First Indian State To Adopt January-December Fiscal Format

Bhopal: Becoming the first Indian state to adopt the January-December fiscal year format, Madhya Pradesh on Tuesday announced shifting of its financial year from the present April-March cycle. This comes after the recent pitch from Prime Minister Narendra Modi for shifting the fiscal year to January-December period during NITI Aayog's governing council meet in the national capital. The government had in July last year set up a committee headed by former chief economic adviser Shankar Acharya, to examine "desirability and feasibility" of having a new financial year.

"The state cabinet in its meeting chaired by Chief Minister Shivraj Singh Chouhan today decided to shift the fiscal year January to December. So, now the budget session of the next FY would be held in December-January," state Public Relations Minister Narottam Mishra said after the cabinet meeting.

"We would try to finish the current fiscal by December this year. So the next budget would either be presented in December this year or January next year," he added.

Changing the financial year format to January-December would mean shifting the tax assessment year, changes in infrastructure, specifically at the company level.

As a colonial legacy, India started following April-March period as financial year after getting Independence. 

Breaking the age-old tradition this year, the government had also advanced presentation of Budget by a month to February 1.

Addressing the states, PM Modi had said: "In a country where agricultural income is exceedingly important, budgets should be prepared immediately after the receipt of agricultural incomes for the year".

(With PTI inputs)