Govt forms panel to examine desirability and feasibility of new financial year

The government has set up a committee to examine the desirability and feasibility of having a new financial year. According to the Finance Ministry, the four member committee will be headed by former Chief Economic Advisor Shankar Acharya. As per terms of reference, the committee will examine the merits and demerits of various dates for commencement of financial year including the existing dates. 

The panel will take into account the genesis of current financial year, suitability of financial year from point of view of correct estimation of receipts and expenditure of Central and State governments. It will also consider the effect of the different agriculture crop periods, impact on business, taxation systems and procedures, statistics and data collection and convenience of legislatures for transacting budget work. 

The committee has been asked to submit its reports by 31st of December this year. In case the committee decides to recommend a change in the Financial Year, it will also work out the modalities for effecting the change. Presently the Financial Year starts from 1st of April. #casansaar