Govt to align financial year with Calendar year: Jaitley

The government is considering changing the financial year to January-December from the existing April-March cycle, Finance Minister Arun Jaitley said Friday.

“The matter of changing financial year is under consideration of the government,” Jaitley told the Lok Sabha in a written reply.

He said the issue of changing the financial year was recently examined by a committee constituted by the government under the chairmanship of former economic advisor Shankar Acharya.

Jaitley confirmed that the government has received the report of the committee. However, the finance minister declined to elaborate on whether the government was also proposing to advance the Budget presentation to November-December from the current practice of presenting the Budget in February.

The finance ministry had in last year set up an expert panel led by Acharya to examine the “desirability and feasibility” of having a new financial year. The committee has recommended moving to a new fiscal year cycle of January to December.

Several countries across the globe follow the January to December financial year. Foe India, it is significant as it will help improve the flow of expenditure before the monsoon sets in.

To help improve spending, the Centre had last year advanced the budget presentation from February 28 to February 1. It was consequently passed before the end of financial year on March 31.