Madhya Pradesh adopts Jan-Dec as Financial Year
Subsequent to PM Narendra Modi's recent pitch for transitioning to a Jan-Dec financial year model, Madhya Pradesh has become the first state in India to adopt the January-December financial year format, from the current April - March model
Subsequent to PM Narendra Modi’s recent pitch for transitioning to a Jan-Dec financial year model, Madhya Pradesh has become the first state in India to adopt the January-December financial year format, from the current April – March model.
The BJP led MP government will adopt this model immediately, with the next budget being presented in December 2017 – said government spokesman Narottam Mishra after the cabinet met under the chairmanship of Chief Minister Shivraj Singh Chouhan.
Since 1867, India has been following the April-March financial year, adopting it to coincide with the British financial year. Prior to this, India used to follow the May-April financial year. Earlier in 2016, PM Narendra Modi, in a meeting of the governing council of NITI Aayog, had made this proposal of shifting the financial year to coincide with the calendar year, saying that the move could have a major positive impact on the national economy.
In a paper published to advocate the move, the NITI Aayog said that difficulties faced by the government in collecting timely statistical data related to monsoon and agriculture resulted in poor implementation of benefit schemes. The changes in the model will permit timely access to important data resulting in effective execution of the budget estimation process. It will also ease in doing business with investors and multinationals who follow the calendar year as financial year.