oppn parties Financial Year: Is Jan-Dec Better?

News Snippets

  • Supreme Court sentences Congress leader Navjot Singh Sidhu to one year rigorous imprisonment in the 1988 road rage case
  • Home Minister Amit Shah says rights should not be demanded before fulfilling responsibilities and that universities are no place to wage ideological battles
  • NIA court convicts JKLF chief Yasin Malik in terror funding case after he pleads guilty of all charges
  • A study backed by PM-EAC has recommended universal basic income and urban job guarantee and greater spend on social sector schemes
  • Supreme Court rules that the decisions of the GST Council are not binding on the Centre and the states, leaving the door open for states to levy further taxes
  • After sustained campaign by BJP MP Arjun Singh, the Centre today withdrew the jute price cap order, industry welcomes move
  • Akasa Air might postpone its July launch due to late arrival of aircrafts
  • Metro Cash & Carry decides to sell Indian operations. All major players, including Reliance retail and Amazon, are likely to bid
  • Local and global cues spook the markets on Friday - Sensex crashes 1416 points to 52792 and Nifty by 430 points to 15809
  • IPL: RCB crushes GT by 8 wickets as Virat Kohli returns to form with a well-made half century
  • Nikhat Zareen is world champion in flyweight category. Wins gold at Women's World Championships at Instanbul
  • Supreme Court uses its special powers under Article 124 to release A G Perarivalan, a Rajiv Gandhi assassination convict
  • Indrani Mukherjea, prime accused in the Sheena Bora murder case, gets bail from Supreme Court after 6.5 years in jail
  • Hardik Patel quits Congress, says top leaders distracted by mobile phones and state leadership busy arranging 'chicken sandwiches' for them
  • Anil Baijal resigns as Lieutenant Governor of Delhi citing "personal reasons"
Nikhat Zareen is crowned world champion in the flyweight (52Kg) category at the Women's World Championships in Istanbul /////// Supreme Court sentences Navjot Singh Sidhu to rigorous imprisonment of one year in the road rage case /////// Sunil Jakhar, who quit the Congress a few days ago, joins the BJP
oppn parties
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.