Madhya Pradesh first state to shift to Jan-Dec fiscal year
The traditional April 1-March 31 financial year has been introduced in India in 1867 by the then British government.
Bhopal: In a first of its kind move in the country, the Madhya Pradesh Cabinet here on Tuesday gave the approval to advance the commencement of financial year to January 1 from the existing April 1, breaking a 156-year-old tradition in the country.
Madhya Pradesh has become the first state in the country to declare English calendar year, January 1-December 31, as the state’s financial year, following the Cabinet decision.
Incidentally, Tuesday’s Cabinet meeting has been dubbed as “tiffin (lunch) Cabinet meeting” with ministers carrying their lunch boxes to discuss the Cabinet agendas as per instructions from chief minister Shivraj Singh Chouhan’s office.
All the ministers, including the chief minister, had brought lunch boxes from their homes to have lunch together over the Cabinet meeting.
Sources in chief minister’s office said the newly constituted “Anand (happiness) department” had suggested the step to create a positive atmosphere in the meeting.
“The state Cabinet decided to commence financial year from January one and end in December 31, breaking away from the traditional April one- March 31 financial year. The next budget session will be held in December-January to bring into effect the new financial year,” state parliamentary affairs minister Narottam Mishra told reporters while briefing them on the cabinet proceedings.
The Union government is also mulling to advance the financial year as per recommendations by Dr Shankar Acharjya committee constituted to suggest financial reforms.
The traditional April 1-March 31 financial year has been introduced in India in 1867 by the then British government.
The cabinet also decided to accord Narmada river, lifeline of MP and Gujarat, a living being for her protection and preservation.
The MP legislative assembly would pass a resolution in this regard on Wednesday.