In April 2017, Prime Minister Modi has proposed to change financial year to January to December and also some changes in budget. Now as per latest news, the financial year could commence from January and Union Government is ready to make the historic change to end the 150-year-old tradition.
Also, the next Union and Rail budget could be presented in November 2017. The government is working hard to make the financial year alignment with calendar year, as earlier PM Modi suggested.
So if this news happens to be true, this would be another historic change. Earlier this year, government presented budget on February 1, 2017 and ended the decades-old tradition of presenting budget in the last week of February.
Even the Union government presented both budgets during the market hours. Earlier budgets were used to present after the market hours.
According to new, the new budget for FY-18 session in Parliament would be held before December to make the complete exercise on the budget.
Generally, it takes almost two months for budgetary exercise, the budget session could be held in the first week of November 2017.
From 1867, India is following the financial year from 1 April to 31 March as that time, British Government wanted to align the Indian financial year with that of the British Government.
The financial year from April 1 to March 31, currently in vogue nationally, was adopted in 1867 principally to align the Indian financial year with that of the British government.
Before that Indian financial year used to be from 1 May to April 30. After PM Narendra Modi suggested to align the financial year with the calendar year, the Government appointed a committee to study the feasibility of this plan.
NITI Aayog das said that a change in financial year was required as the current system leads to optimal utilization of working.
Also current Indian financial year cycle chosen without any reference to our culture or tradition or convenience.
According to NITI Aayog, Indian financial year is not aligned with International practices.
Prime Minister had said, “Because of poor time management, many good initiatives and schemes had failed to deliver the anticipated results,”
After this, Madhya Pradesh state government became the trend-changer and shifted its financial year to January-December from 2018.
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