Govt may not change financial year, date of Budget could be advanced further

Currently, the Government of India has been following April-March financial year, a 150-year old tradition of British rule.

The Government of India is unlikely to change April-March financial year to January-December. 
 
Instead, it is mulling if the presentation date of Budget could advanced further by a fortnight or so. 
 
The government this year presented Budget on February 1, about a month ahead of the traditional date of February 28, when the previous governments usually presented the Budget post-Independence.
 
Currently, the Government of India has been following April-March financial year, a 150-year old tradition of British rule. 
 
In its willingness to shift the financial year to January-December, the government had even set up a committee.
 
The Finance Minister Arun Jaitley, in a written reply to a question in the Lok Sabha on July 21, said, "the matter of changing financial year is under consideration of the government". 
 
However, "for now (2018-19), changing the financial year appears unlikely," a senior government official told ET. 
 
He added that the change-over to a new financial year is unrealistic, as the budget would have to be presented by end of this October or early November.
 
Last year, the government had demonetised Rs 500 and Rs 1000 currency notes. In July this year, it rolled out GST, one of the biggest reforms of the country. The experts say change in financial year by the government will add to the disruption. 
 
Lok Sabha elections are scheduled to be held in 2019 and, hence, the government will hesitate in changing the financial year. 
 
Source: ET

Event date: 
Tuesday, August 29, 2017

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