Prime Minister Narendra Modi would be remembered in India’s history for effecting many firsts in India’s economy. Modi advanced presentation of Budget date from February 28 to February 1 for an early release of funds for government expenditure.
Apart from that, breaking away from tradition of holding a separate rail budget, Modi government scrapped it and clubbed together railway proposals with the general Budget. Earlier, it had scrapped Planning Commission, symbol of a mixed economy.
Now Modi government is working on plans to change financial year set up that presently starts from April 1 and lasts till March 31.
On April 23, Modi chaired governing council meeting of India’s planning think-tank Niti Aayog that was also attended by vice-chairman Arvind Panagariya.
The proposal in favour of a January-December financial year cropped up at the meet. According to a report in the media, India will have to enact a number of changes for implementing a January-December fiscal regime.
The Budget which at present is tabled in Parliament on February 1 would have to be advanced to November to enable an on time release of funds for various government needs.
The report adds that an April-March fiscal year was started by British colonialists 150 years ago in 1867 to align India’s accounting year with that of Britain’s.
