Panel Favours Fiscal Year From January 1; Centre Examining Recommendation

The government is examining the report of a committee which has recommended change in the fiscal year starting April 1, Finance Minister Arun Jaitley said on Friday. Replying to questions in the Lok Sabha, he said disclosing the recommendations of the committee and the prima facie view of the government on it at this stage would be unfair as it may amount to pre-judging the issue.

The committee is learnt to have recommended advancing the fiscal year and equating it with the calendar year from January 1.

Responding to supplementaries during Question Hour, he said since the move has various implications for the Centre, the states and various local bodies, it is necessary to have have wider consultations before arriving at a conclusion. The minister said the Indian system of financial year is based on the tradition laid out by the British. In some countries, he explained, the new fiscal begins from January or even June, depending on the local requirements.

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He said one aspect of the budgetary exercise has been taken care this year by advancing the date of presentation of the Union Budget to February 1. The early passage of the Finance Bill would help the government allocate funds to various ministries and states at the beginning of the new fiscal.

With the passage of the Finance Bill, the Lok Sabha on March 22 completed the entire budgetary exercise for 2017-18.

It was later passed the Rajya Sabha with some amendments which were rejected later by the lower house.