After Madhya Pradesh, Telangana Mulls Budget As Per Calendar Year

Hyderabad: Just weeks after Madhya Pradesh decided to shift its financial year format, Telangana government on Tuesday announced plans to make the state budget as per the calendar year, replacing the system of having the financial year from April 1 to March 31.

"Chief Minister K Chandrashekhar Rao has said that in tune with the Centre's thought process and in accordance with its proposed policy, the state government has plans to introduce the Budget from the calendar year to calendar year (January 1 to December 31)," a release from Rao's office said.

Rao instructed Finance Minister E Rajender and officials to visit Madhya Pradesh, which decided to announce shifting of its financial year format to January-December from the present April-March cycle, it said.

The BJP-ruled Madhya Pradesh recently switched its fiscal year to calender year early this month. The government had in July last year set up a committee headed by former chief economic adviser Shankar Acharya, to examine "desirability and feasibility" of having a new financial year.

Changing the financial year format to January-December would mean shifting the tax assessment year, changes in infrastructure, specifically at the company level.

As a colonial legacy, India started following April-March period as financial year since Independence.