The 150-year old practice of a financial year from April to March is again pitched to be wrapped up in the coming year. The move that shall disrupt the financial domain of the country tremendously, from filing tax returns to the broader budget presentation.
Chief Economic Advisor Subramanian while presenting the second volume of the Economic Survey of the country, said that the trend of presenting it in two volumes after a span of six months would depend how future budgets are timed.
In the Economic Survey's preface "Whether this practice of issuing two volumes continues will depend in part on the future timing of the Budget calendar". "Since Volume 2 appears almost half a year (an event-rich period with GST implementation, demonetisation impacts, farm stress etc.) after Volume 1, a fresh macro-economic update with an analytical review of the pressing issues seemed necessary," Subramanian said. The presentation of Economic Survey shall also see a change if the financial year sees a change from the current period which starts from April every year to March in the next year.
The main favourable argument in making a transition from the current FY period is that the monsoon period triggers in June which is deemed to be the country's lifeblood and hence it makes the policy making difficult as it just kicks in barely two months after the new financial year starts.
The committee headed by CEA Shankar Acharya has submitted its report to the government in respect of the different pros and cons of transitioning from the current FY period.