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Budget to be presented in November
Posted on: 28/Jun/2017 11:43:53 AM
A high-level committee has recommended the central government to change the prevailing financial year format from April - March to January - December.
When the British ruled India, they set up their own financial year format which was from April to March.
Niti Ayog recommended that this should be changed to January - December financial year format which will be beneficial to the growth of the country’s economy as well as finding solutions related to the issues faced by the agricultural sector.
In order to conduct a detailed study on this proposal, a high-level committee was formed headed by the Former Chief Economic Adviser Sankar Acharya.
Mr. Sankar Acharya explained that the prevailing financial year format is from April to March.
As regards the stock market, the financial year format followed is known as Samvat year format, which starts during the Karthika immediately after the Diwali Festival.
A detailed review was conducted about the features and other aspects of the above 2 year formats. After this review, based on the several benefits to be accrued, the financial year format January to December has been recommended to the central government.
In case the central government changes the financial year format to be January to December, the budget will need to be presented in November – changing the 150-year old traditional presentation of the budget in February - March.
There will be changes required in the parliamentary sessions as well. The state governments have to follow suit after this change. The state government of Madhya Pradesh has changed the financial year format to the calendar year and passed a resolution in the Legislative Assembly.
156 countries in the world, including China, Russia, and Mexico follow the financial year format of January to December.
