Madhya Pradesh becomes First State to Shift Financial Year to Jan-Dec Format
Madhya Pradesh has become the first state in the country to shift its financial year from the present April-March cycle to January-December. The state’s budget session for the next financial year would be held in December-January. Hence, the state government plans to finish the current budget proceedings by December this year.
Shifting of the financial year format to January-December would require shifting of the tax assessment year. It also necessitates changes to be made in infrastructure especially at the level of companies.
The decision of the Madhya Pradesh state government comes in the backdrop of Prime Minister Narendra Modi’s suggestion of shifting the fiscal year to January-December period during NITI Aayog governing council meeting on April 23 held at New Delhi. He had reasoned that as agricultural income is exceedingly important, budgets need to be prepared immediately after the receipt of agricultural incomes for the year.