As per a senior official, it is unlikely that financial year cycle will be changed from April-March period to January-December during the current term of Narendra Modi. The matter has been put on hold as all the states in the country are not in favour of the same.
The official said, "A number of states are not on board with the idea. The financial year change has been put on the back burner". Also he said that a final decision on the matter could be taken in 2019.
As of now India follows April to March financial year since 1867 which is 150 year old practice and dates back to the British rule. The committee has been set up to consider the issue. . But as not many advantages have come to the fore in making the transition in the financial year cycle, the decision has been ruled out.
The official said "Too many disruptions like the goods and services tax (GST) and lack of data are also hurdles in advancing the financial year". The government also factored in the general elections to be held in the year 2019 that shall make the process even more complicated.
The Centre is working and analyzing the report of Shankar Acharya committee that was given the task of studying the implication of bringing about the shift in the financial year.
Another leading business daily puts across that the government is considering advancement of presentation of budget by a fortnight or so. This year the government presented the budget on February 1 against age old practice of its presentation on February 28.