High level government sources have revealed that the financial year could be shifted to the January-December cycle from the current April-March cycle. And this major shift could happen as early as 2018. Sources said that the government wants to make this transition happen at the earliest. The April-March fiscal year cycle is a colonial legacy and Modi government wants to change this to reflect the modern times. Globally, many countries have chosen the January-December cycle as a replacement for the April-March cycle. If implemented, it will be a historic moment for the country, since the April-March fiscal year cycle is being followed for more than 150 years now.
If the fiscal year is changed to Jan-Dec in 2018, then the annual Union budget will have to be announced in November this year. A high-level committee is currently looking into all the aspects of the proposed change to the fiscal year cycle. A preliminary report was prepared by the committee and submitted to the Finance Minister last year. NITI Aayog had also supported the shift to the Jan-Dec fiscal cycle since it will help optimal utilization of working season.