New Delhi: While addressing at the Niti Aayog’s governing council meeting on Sunday, Prime Minister Narendra Modi spoke of shifting the fiscal year to January to December period from the current April to March period.
Atrributing the positives towards the particular move, Modi said that;
- The shifting of financial year to Jan-December will align India with the prevailing practice of developed countries.
- This will be a progressive, convenient transition for the Indian economy as it gets increasingly integrated to the global economy and with more companies from across border engaging in business activities.
- For MNC firms in India, which are currently dealing with two types of financial years here and at the parent country, a uniform structure will be a relief to manage their accounts.
Chief Economist at rating agency, Crisil, Indian subsidiary of Standard and Poor’s DK Joshi said that there is no reason for India to continue with a colonial practice after seven decades of winning freedom from British Raj, an idea Modi-government has already begun to implement when it advanced the union budget presentation by a month.
Earlier, the plan was also proposed in the last year and the panel formed then had said that the change will align the financial year with the crucial monsoon cycle and also with the country’s crop harvests both for Rabi and Kharif seasons. Presently, before the Union budget presentation in February, the government doesn’t get any solid data on monsoon forecast for new financial year, which becomes a problem and a source of uncertainty while drafting the income-expense chart. So, there are some merits to the Jan-December system.
“Niti Aayog is working on a 15-year long term vision, 7-year medium-term strategy, and 3-year action agenda,” Modi said, adding the vision of ‘New India’ can only be realised through the combined efforts and cooperation of all the states.
The meeting of the Governing Council at the Rashtrapati Bhavan was attended by several chief ministers, including from non-BJP ruled states like Punjab, Bihar, Tripura and Karnataka. The notable absentees were West Bengal Chief Minister Mamata Banerjee and Delhi Chief Minister Arvind Kejriwal.