oppn parties Financial Year: Is Jan-Dec Better?

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  • India's sovereign green bonds were oversubscribed four times as the RBI received 266 bids worth Rs 32892cr agaisnt the target of Rs 8000cr
  • Google tweaks its Android and India app store policy to allow manufacturers and users to choose certain things instead of compulsorily using Google apps after the CCI order and fine for unfairly dominating the market
  • Former US secretary of state calls former Indian external affairs minister Sushma Swaraj a "goofback" and a "hinterland political hack". MEA S Jaishankar slams him
  • Jamia screening of BBC documentary on Gujarat riots cancelled after the university was turned into a fortress and later 13 students were detained by the police
  • Supreme Court grants conditional interim bail for eight weeks to Lakhimpur Kheri accused Ashish Mishra. The bail can be further extended based on his conduct. He was asked to stay outside Delhi-NCR and UP and surrender his passport
  • After the JNU administration tried to thwart the students from screening the BBC documentary on the Gujarat riots and PM Modi, now students of Presidency and Jadavpur universities in Kolkata have decided to screen it 5 times next week
  • While a US research frim Hindenburg says its analysis found the Adani group overleveraged and claimed that its bubble will burst very soon and that sent the price of group companies crashing (Adani companies lost a combined Rs 55000cr), Adani group said the report was 'baseless' and 'malicious'
  • This time Enforcement Directorate arrests TMC spokesperson Saket Gokhale under PMLA for money laundering
  • Padma awards announced on Republic Day: Mulayam Singh Yadav, architect Balkrishna Doshi and ORS pioneer Dilip Mahalanobis get Padma Bibhushan posthumously, Padma Bhushan ius awarded to Kumar Mangalam Birla and 8 others and 91 get Padma Shri
  • Stocks fall big time on Wednesday on F&O expiry, finalncial and banks take big hit: Sensex tumbles 773 points to 60205 and Nifty 226 points to 17892 even as the market volatility meter shoots up by 8.51%
  • World Cup hockey: Germany stun England 4-3 to reach semifinals; Netherlands beat Korea 5-1 to enter last four
  • Australian Open: Sania Mirza and Rohan Bopanna reach the finals
  • Suryakumar Yadav is named ICC Cricketer of the Year 2022 and Renuka Singh gets the ICC Emerging Cricketer of the Year 2022 award
  • BCCI gets a whopping Rs 4670cr in the auctions for the 5 teams in WIPL or as it will be known now, WPL. Adani Sportline gets Ahmedabad for Rs 1289cr while Mumbai Indians get Mumbai for 913cr
  • Calcutta HC overturns the hookah bar ban in Kolkata by saying that it is not an illegal trade
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Financial Year: Is Jan-Dec Better?

By Ashwini Agarwal
First publised on 2017-04-24 16:14:51

Should India move to a financial year from January to December? The prime minister pitched for it when addressing the NITI Aayog meeting on Sunday. Before that, there were whispers in the corridors of power that the government was thinking along that line ever since the Shankar Acharya committee had recommended the same. Although the advancement of the date of budget presentation to February 1st instead of 28th was explained away as a move to ensure that budgetary expenditure was ready to be undertaken from April 1, many had said that the move was also in order to gradually advance the budget to bring it to November, in preparation for a move to Jan-Dec financial year.

There is nothing wrong in such a move. In fact, since the British had set April-March as India’s financial year only to align it with the practice back home, the time is ripe for India to break with the colonial legacy and bring its financial year in line with what is followed in the rest of the world. With a pitch for Make in India, a host of MNCs and other smaller foreign firms are coming to work in India. It is extremely difficult for them to maintain records for two types of financial years – one in India and another for the mother country.

No change is easy. This change will also create confusion for some time. It will also entail a cost. But once the change is fully implemented, the benefits will be immense. There is a cost in changing names of roads and towns too. But that is being done with abandon in our country. Hence, this change should not be denied just for the cost. There will be benefits if the budget is presented in November as it will mean that the government will have more precise data about monsoons and crops with it. If it is true that the move will be beneficial to the economy, all else does not matter. It will all fall in place over time.