Change is constant and hence, the same seems to be applicable in the economic structure of the country as well. As we know, the fiscal year of the country has been from March to April since 1857 but Niti Aayog suggested changing fiscal year format to January to December. Prime Minister of India, Shree Narendra Modi also request state government to adopt new fiscal year format.
After Madhya Pradesh, it is now Telangana which has agreed to change its fiscal year of or the state’s financial year from January to December. The move is basically done in line with the plan implemented by the center.
Madhya Pradesh went into the said ‘state financial year model’, right after, the Prime Minister’s pitch was emphasized on the change. After the chief minister of Madhya Pradesh, Shivraj Singh Chauhan went ahead with the announcement of the change in his State’s financial year, the Chief Minister of Telangana, Mr. K. Chandrasekhara Rao on Tuesday, 16 May 2017, announced the similar change being brought into practice in state of Telangana by his government. He said that Telangana state is ready to adjust the financial year from January to December.
Also, there was a meeting held by Mr. Rao, with the senior officials of finance department to emphasize the matter to be brought into force. It was last year itself, that, the suggestion of changing the fiscal year from ‘March to April’, to ‘January to December’ was supported by a committee appointed by the center.
Telangana’s chief minister has ordered the finance department, by giving instructions to his finance minister Mr. Etela Rajender, to have a visit to the state in order to understand the change.
The change is most importantly advised due to the reason that, lot of difficulties was faced in accommodating the stats with regard to the monsoon and also the income data of agriculture. It is speculated that the statutes will undergo a change as well, in context to the new Financial Year.
However, the government of Andhra Pradesh has to still take a decision on this and no clue of adhering to the change has been given yet. It is believed that the base of grants and share in the Central taxes is the ‘FY cycle’ and if the Center decides to go with the change of the fiscal year as proposed by the Prime Minister then all the states have to adhere to the change for the above said reason of base. May be Telangana has hence gone with the change.