Madhya Pradesh has on Tuesday become the first State to announce shifting of its financial year format to January-December from the present April-March cycle.
A decision to this effect was taken during the State Cabinet meeting held here.
The decision 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.
While talking to mediapersons after the Cabinet meeting, Public Relations Minister Narottam Mishra told, "The State Cabinet in its meeting chaired by Chief Minister Shivraj Singh Chouhan today decided to shift the fiscal year from January to December. So, now the Budget Session of the next FY would be held in December-January."
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, especially at the company level.