MP becomes first state to approve Jan-Dec fiscal year

RSTV Bureau

Shivraj-Chouhan-genMadhya Pradesh became the first state to announce shifting of its financial year format to January-December from the present April-March cycle.

The decision was taken during the state cabinet meeting held in Bhopal on Tuesday.

The decision comes just days after Prime Minister Narendra Modi made a pitch for shifting the fiscal year to January-December period during NITI Aayog’s governing council meet in the national capital recently.

“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 told reporters after the cabinet meeting.

When asked about the ongoing fiscal 2017-18, the minister said that the state government will try to finish the current budget proceedings by December this year.

“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,” Mishra said.

Addressing the states during NITI Aayog governing council meeting on April 23, 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”.

He had added that there were suggestions to shift the financial year from January to December.

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

(With inputs from PTI)