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Desirability and Feasibility of Changing the Financial Year

Desirability and Feasibility of Changing the Financial Year
Start Date :
Aug 24, 2016
Last Date :
Oct 01, 2016
00:00 AM IST (GMT +5.30 Hrs)
Submission Closed

The Government of India has appointed a Committee chaired by Dr. Shankar Acharya, former chief economic adviser, to examine the desirability and feasibility of having a ‘new ...

The Government of India has appointed a Committee chaired by Dr. Shankar Acharya, former chief economic adviser, to examine the desirability and feasibility of having a ‘new financial year’. Other distinguished members of the Committee are Shri K M Chandrasekhar, former Cabinet Secretary, Shri PV Rajaraman, former Principal Finance Secretary, Tamil Nadu and Dr. Rajiv Kumar, Senior Fellow Centre for Policy Research.

Presently, the financial year followed by governments in India runs from 1st April to the following 31st March.

This issue was last examined by the L K Jha Committee in 1985, whose recommendation to move to a financial year of January 1- December 31 (for Central and State Governments) was then not accepted by the then Government.

There are many arguments for and against the change in financial year which revolve around issues of budget and cash management by government, seasonality of government revenues and expenditure, impact of Monsoon on budget forecasting, working season, timelines involved in the legislative cycle of passage of Budget by the Parliament, international comparability of fiscal statistics, aligning government’s financial year with year for tax assessment and corporate accounting purposes. Some arguments are less on the intrinsic merit or demerit of the change but rather on the timing of the change when the change coincides with other developments impacting businesses.

This Discussion Forum seeks to invite inputs from everyone interested in this issue.

We welcome your comments, suggestions, information and documents on the Committee’s Terms of Reference and issues related to it. Please provide these latest by 30th September, 2016.

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Showing 816 Submission(s)
suresh Nair
suresh Nair 9 years 10 months ago
it is desirable to change financial year as calender year that is January to december as most of the countries follow and budget shall be in first month of last quarter that is octber last so as to clear all appropriations by passing budget and start from jabuary
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Tushar Bishnoi
Tushar Bishnoi 9 years 10 months ago
The financial year should begin from july to june as it is also the duration for an agricultural year in maximum parts of the country. It will also help boost growth as monsoon season also starts from july onwards. As most of the agricultural activities and industrial activities are dependent on monsoon a more effective budget can be presented in july-june financial year considering the factors of monsoon.
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abhishek goel
abhishek goel 9 years 10 months ago
In your financial year plan pls consider idea of building hyperloop one technology into country ...it maybe the future of transportation in the world.....this technology enables us to move at a speed of more than 1200 km per hour....nd building cost is one tenth of high speed trains....this is a very good technology nd indians should be first to use technology in world...
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Thulasi madhusudhan
Thulasi madhusudhan 9 years 10 months ago
YES,This will truly help our economy,1)As December is a slag season most of the people can utilise this time for this work.2)April is a hectic season and people don't find time for this work and they find it dificult to do properly.3)Mind should be calm to do this acounting work,in December we can find people idle most of the time.4)Most of the people find time to plan for the whole year which they can remember easily and can record it easily and can furnish the records easily to the Authorities
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Dr Subrata Kumar Dash
Dr Subrata Kumar Dash 9 years 10 months ago
Changing financial year to 1 Jan will certainly contribute to global business readiness. Similarly we should also promote celebration of Indian New Year to enrich our culture
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ARAVINDAKSHAN PK
ARAVINDAKSHAN PK 9 years 10 months ago
This change is much benefit for the financial administration . But the main thing is the efficiency in tax collection .
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GAMIT ANKITBHAI DANIYELBHAI
GAMIT ANKITBHAI DANIYELBHAI 9 years 10 months ago
It is good idea. And it is very important to change the financial year of Jan 1st to Dec 31st. It will boost the Economy of our country.
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Chandra Prakash
Chandra Prakash 9 years 10 months ago
वित्तीय वर्ष तो यही रहना चाहिए April to march (चैत्र मास से फाल्गुन मास तक) इतना कर सकते हैं कि जो भी नियम june या july से लागू करते हैं वही सब april महीने से लागू कर दें। वित्तीय वर्ष यही रखने का कारण कई हैं। जो निम्नलिखित हैं 1). चैत्र मास से ही हिन्दू नव वर्ष चालू होता है जो कि march/april महीने में ही आता है। 2). शास्त्रों और पुराणों के हिसाब से चैत्र मास ही नव जीवन का आधार है। 3). बसंत ऋतु भी इसी मास में आती है जो चारोँ और हरियाली फैला देती है। 4). अगर अंग्रेज हो तो बदल लो। जय भारत।
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S VARADARAJAN
S VARADARAJAN 9 years 10 months ago
I THINK WE CAN CONTINUE WITH THE CURRENT FINANCIAL YEAR FORMAT WHICH IS WORKING FINE AND I FEEL THERE IS NO NEED TO CHANGE. THE CHANGE OVER WILL LEAD TO LOST OF COST WHICH IS NOT AT ALL NEEDED. AND IT WILL ALSO LEAD TO OTHER COMPLICATIONS. THE BUDGET CAN BE PRESENTED BY 15th OF JANUARY EVERY YEAR, SO THAT THE GOVERNMENT WILL ENOUGH TIME TO DISCUSS AND PASS BY THE 15th OF MARCH EVERY YEAR. THIS SHOULD BE DONE NOT ONLY BY THE GOVERNMENT OF INDIA BUT BY THE ALL THE STATE GOVERNMENTS.
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