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Desirability and Feasibility of Changing the Financial Year

Desirability and Feasibility of Changing the Financial Year
Start Date :
Aug 24, 2016
Last Date :
Oct 01, 2016
00:00 AM IST (GMT +5.30 Hrs)
Submission Closed

The Government of India has appointed a Committee chaired by Dr. Shankar Acharya, former chief economic adviser, to examine the desirability and feasibility of having a ‘new ...

The Government of India has appointed a Committee chaired by Dr. Shankar Acharya, former chief economic adviser, to examine the desirability and feasibility of having a ‘new financial year’. Other distinguished members of the Committee are Shri K M Chandrasekhar, former Cabinet Secretary, Shri PV Rajaraman, former Principal Finance Secretary, Tamil Nadu and Dr. Rajiv Kumar, Senior Fellow Centre for Policy Research.

Presently, the financial year followed by governments in India runs from 1st April to the following 31st March.

This issue was last examined by the L K Jha Committee in 1985, whose recommendation to move to a financial year of January 1- December 31 (for Central and State Governments) was then not accepted by the then Government.

There are many arguments for and against the change in financial year which revolve around issues of budget and cash management by government, seasonality of government revenues and expenditure, impact of Monsoon on budget forecasting, working season, timelines involved in the legislative cycle of passage of Budget by the Parliament, international comparability of fiscal statistics, aligning government’s financial year with year for tax assessment and corporate accounting purposes. Some arguments are less on the intrinsic merit or demerit of the change but rather on the timing of the change when the change coincides with other developments impacting businesses.

This Discussion Forum seeks to invite inputs from everyone interested in this issue.

We welcome your comments, suggestions, information and documents on the Committee’s Terms of Reference and issues related to it. Please provide these latest by 30th September, 2016.

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Showing 816 Submission(s)
vinodkumar1936@yahoo.in
Maj Gen Vinod Kumar Retd kumar 8 years 2 months ago

Changing the Financial year to start from any date might merely prove an exercise in futility A gimmick for the sake of changing the existing system We have numerous financial dealings with the USA Will we next change the accounting year to suit theirs Every system has + & - No one has so far spelt out the compelling shortcomings of the existing system So is the present suggestion merely because it was started by colonial masters? We have so many of colonial good things too Let it stay

dsmankotia@gmail.com
Darshan Mankotia 8 years 2 months ago

Dear Sir,Make it from first Jan to 31 Dec .When you change it first time utilise unexpended budget to recover deficient gap
Regards and All the best .

Madan Lal Narula
Madan Lal Narula 8 years 2 months ago

Financial year from 1st April to 31 March is good as it provides good weather condition to concentrate for finishing the tasks assigned. December end is the time where large number of officer consume leave and go out with their family to enjoy. Stress should be planning activities to spend the budget through out the year uniformly. Presenting the budget in Parliament end January may facilitate this and make the spending effectively

SANTHANAM KANAGASABHAPATHI
SANTHANAM 8 years 2 months ago

March Month heavy work. Account closing month. Full concentration only in accounts. April month is settle the accounts preparing Audit work. On the other hand March & April Examination time. Every examination is fundamental of the Child life. But no concentration in the Child Education because tight Office work. If change the financial year from January to December all work completed January and to concentrate the Child life. So the financial year change is must.

sathe.mahendra@hocl.gov.in
Mahendrakumar Sathe 8 years 2 months ago

It gives impression that government is not serious enough to fulfill & deliver promises to people of this country. Government to ensure change should bring change in lives of millions of people of this country. Do not do something just like that. If u want to change, change the way MP & MLA enhance their salary & Perks unilaterally. Take views from the people of this country regarding MP, MLA pay Hike and perks.

sathe.mahendra@hocl.gov.in
Mahendrakumar Sathe 8 years 2 months ago

We must have pragmatic approach while deciding our priorities. Financial year in it's present form or in calendar form; what difference is it going to make to our economy ? It sounds something like we are inclined to spend our energy & time & money for cosmetic changes which will neither enhance tax collection nor make your procedures simple. Just because it has inherited from British, does it mean that it not worth following or deserves to be abandon just for fancy reasons.Change othr area frst

sumanta.swain@gmail.com
Dr Sumant Swain 8 years 2 months ago

The financial year should change and start from January to December. WE are facing problem to collect health data or other govt data which record from March to April but in international practice, it start from January to December. On the other hand central assistance to state not being used due to this old practice and it should change and streamline it. It will give better fund management and data reporting at the local level. Thanks PM for this bold initiatives.

srbhagwan@yahoo.com
BHAGWAN S R IYENGAR 8 years 2 months ago

I see no major steps which will improve and efficiancy, with change in Financial year. Hence, it is better to keep going with existing.

Gulabchand Vinayak
Gulabchand Vinayak 8 years 2 months ago

Yes, the Financial Year should be immediately changed to Calendar Year. Because, There is lot of confusion even in educated people.