Change in financial year unlikely for now
Posted on: 29/Aug/2017 12:56:44 PM
Media reports state that the Narendra Modi government that has been rallying to make January to December as the financial year might not be able to achieve it in the present year.
A senior government official said that with the shift in Financial Year period to January to December, the budget will have to be presented right during the end of October or early November which is practically unrealistic. However, there are plans for the government to prepone the budget presentation deadline by 2 weeks.
To note, the present financial year period between April and March has been in practice for over 150 years.
The Modi government however wishes to break the tradition and make January-December session as the financial year henceforth. Giving a written reply, the Finance Minister mentioned that the government is considering the factor of changing the financial year.
Niti Aayog who is the think tank to eh government also insisted on bringing the practice of January to December financial year which is being in practice in many other countries.
Especially, there have been 2 prominent reforms in the past 1 year which are demonetization and GST. For the country to fit into the new changes, it may take some time and it will probably encounter certain disruptions. Furthermore change in financial year may only cause a disruptive impact.
