Andhra Pradesh Chief Minister N Chandrababu Naidu has expressed inclination to change state’s budget cycle from the existing April-March cycle to January-December cycle.
Naidu held that financial year has to be uniform in the country because the states will receive central grants as well as their shares in central taxes, which are calculated and released in specific financial years.
Prime Minister Narendra Modi earlier in April, supported the idea put forth by Niti Aayog to switch fiscal year stating that in a country where agricultural income is vital, budgets should be prepared right after the receipt of agricultural incomes for the year. On the contrary, the overall contribution of Agriculture to GDP has been trifling.
Nevertheless, Modi is keen on a change the financial year and it is obvious for the BJP governing state to accept the idea. Subsequently, Madhya Pradesh is the first state to shift the financial year to January-December. On the other hand, Maharashtra has ruled out a switch of financial year until and unless the Centre changes it. Gujarat, is watching the steps Madhya Pradesh will be taking to bring about the change, before it goes about with the move.
The debate on best choice for a new financial year has been never ending. But Modi Government appointed a committee under the chairmanship of Shankar Acharya to study the issue and prepare the ground for the change. The report which was submitted to Finance minister towards the end of the year 2016, is yet to made public.
