Madhya Pradesh becomes First State to Shift Financial Year to Jan-Dec Format

Madhya Pradesh is among the most first state near you to shift its financial year from the modern day April-March cycle to January-December. The state's budget session for the following financial year may be stuck December-January. Hence, the local government plans to finish the current budget proceedings by December this year.

Implications

Shifting of this financial year format to January-December would require shifting of this tax assessment year. It also�necessitates changes to remain made in infrastructure especially at the condition of companies.

Background

Deciding of this Madhya Pradesh local government comes in the backdrop of�Prime Minister Narendra Modi's suggestion of shifting the fiscal year to January-December period during NITI Aayog governing council meeting on April 23 held at New Delhi. He previously reasoned that as agricultural earnings are exceedingly important, budgets need be prepared just after the receipt of agricultural incomes for the year.

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