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27 Jun 2017

With possible change in financial year, budget in November?

There is speculation about change in financial year from 2018. The present April-March cycle might soon be rescheduled to January-December.

This might lead to advancement of annual budget to November.

The proposal had come from the PMO and is being considered seriously. However, no decision has been taken yet, though sources say the government has in-principle agreed to recommendations of the concerned committee.

In context

India mulling new January-December financial year
Jharkhand and MP have already adopted new financial calendars


Jharkhand and MP have already adopted new financial calendars

The Shankar Acharya committee, set up in July'16, had suggested shifting of the financial year, in line with many other countries.

Last month, Jharkhand became the second state to adopt the new schedule. It will table its next budget in December'17.

Earlier, Madhya Pradesh had rescheduled its financial year too.

A potentially difficult transition process hampering the change

The transition won't be easy. The first time, the financial year would be of nine months, from March to December, and would require extensive reworking of all taxes and grants. Organizations would also have to realign schedules. Many claim the move won't bring much gain.

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