Coming in the wake of Prime Minister Narendra Modi’s suggestion, the Madhya Pradesh state government has decided to change its financial year to the January-December cycle. The state will be implementing the change by presenting its next annual budget in December 2017. The decision was announced by the state government’s spokesman Narottam Mishra. The decision was taken during a cabinet meeting that was held under the chairmanship of Chief Minister Shivraj Singh Chouhan.
It may be recalled that PM Modi has made the proposal during NITI Aayog’s third governing council meeting that was held last week. PM Modi had said that the shift to Jan-Dec cycle will have a major impact on the national economy. When Madhya Pradesh implements the Jan-Dec cycle, its financial year will be the same as the calendar year. PM Modi had wanted this change not only in specific states, but at the national level as well. Modi has called on state and national leaders to debate on the topic and come to a definitive conclusion.
The current fiscal year cycle of March-April was implemented during the British rule, since the same cycle was followed in Britain. Now, that India has no such constraints, it makes sense to switch to the January-December cycle.