New Delhi: About a week after Prime Minister Narendra Modi pitched for a change in the fiscal year cycle, Madhya Pradesh government announced its decision to switch to January-December financial year.
Addressing media post a 'tiffin' cabinet meeting presided over by Chief Minister Shivraj Singh Chauhan, MP Health Minister and state government spokesperson Narottam Mishra said the budget will be presented henceforth in December, with the financial year starting January and ending in December.
"The chief minister has ordered all ministers to closely monitor the new fiscal period, following which a road map for the next two years needs to be made along with methodology to achieve the announcements made," he said, adding that each department would be holding a meeting with the chief minister and the cabinet every Tuesday.
In order to stabilise the financial position of farmers and benefit the common man, the Prime Minister, while addressing a meeting organised by the Niti Aayog on April 23, suggested that the financial year period be moved from April-March to January-December.
Since India has been primarily an agriculture-based economy, the revenue cycle in the agriculture sector is typically April to March, in order to match the agriculture revenue cycle and ease out financial transactions.
The change to January-December financial year would mean an individual has to pay taxes by the end of the same year. Moreover, there will be a change in the ITR filing, which may change to March 31 instead of July 31, which is presently the last day for filing.
Further to implementing a new budget period, the Cabinet also issued orders for all government material including banners, hoardings, letterheads and advertisements to be issued with a photograph of Pandit Deen Dayal Upadhyay as a mark of celebration of his centenary year.
