For the first time in the country Madhya Pradesh will soon move to January-December financial year from the present April to March fiscal. Madhya Pradesh on Tuesday announced shifting of its financial year format to January-December.
The decision to change the state's financial year was taken by the state cabinet.
State's decision to change the financial year comes close on the heels of Prime Minister Narendra Modi making a pitch for shifting the fiscal year to January-December period during NITI Aayog's governing council meet in the national capital recently.
"The state cabinet in its meeting chaired by Chief Minister Shivraj Singh Chouhan today decided to shift the fiscal year January to December. So, now the budget session of the next FY would be held in December-January," state Public Relations Minister Narottam Mishra told reporters after the cabinet meeting.
When asked about the ongoing fiscal 2017-18, the minister said that the state government would try to finish the current budget proceedings by December this year.
"We would try to finish the current fiscal by December this year. So the next budget would either be presented in December this year or January next year," he added.
Addressing the states during NITI Aayog governing council meeting on April 23, Modi had said, "In a country where agricultural income is exceedingly important, budgets should be prepared immediately after the receipt of agricultural incomes for the year".
He had said there have been suggestions to shift the financial year from January to December.
Changing the financial year format to January-December would mean shifting the tax assessment year, changes in infrastructure, specially at the company level.
(with inputs from PTI)