PM Narendra Modi had recently shown his willingness for the January-December financial year system. Now, Madhya Pradesh government has announced to present the next budget in December and the new fiscal year will start on the 1st January, 2018.


Government spokesperson Mr Narottam Mishra announced the decision after the Cabinet meeting under the chairmanship of Chief Minister Shivraj Singh Chouhan.

 

Mr Modi had made the proposal at the 3rd governing council meeting of NITI Aayog held recently in New Delhi. He said that the move could have a significant impact on the national economy. The present financial year runs from April to March. The change in Madhya Pradesh’s fiscal period will mean that the financial year will coincide with the calendar year.


PM Modi had said: “Because of poor time management, many good initiatives and schemes had failed to deliver the anticipated results,” adding that there is a need to develop robust arrangements that could function amidst diversity. 

 

The April-March financial year has been followed in India since 1867 from the time of British Raj. It was adopted to coincide with the British financial year. Prior to that, India’s financial year was May-April.


Reason behind the change in financial year argued by the NITI Aayog, which published a paper advocating the move last year, was the difficulties faced by the governments in collecting statistical data in relation to monsoons and agricultural income. The change in the fiscal will allow the government to execute the budget estimation process more effectively as it will get timely access to crucial statistical data.