BUDGET 2 LAST

Having ruled by the British for around 150 years, India Having ruled by the British for around 150 years, Indiafollowed the accounting period of April to March, in line withthe Gregorian calendar of accounting. The government has constituted a committee headed byformer chief economic advisor Shankar Acharya to study thefeasibility of adopting a new financial year. The panel willsubmit its report by December 31, 2016. Previously, the L K Jha Committee appointed in May 1984to look into the matter had recommended switching over to thecalendar year, but the government did not accept therecommendation, saying it would cause large-scale problems asmost Indian companies follow the April-March cycle. As the financial year begins on April 1, the governmentin March takes Parliament approval for Vote-on-Account for asum of money sufficient to meet expenditure on various itemsfor the next 2-3 months till the full Budget is passed. TheDemands and Appropriation Bill entailing full-year expenditureas well as tax changes is then passed in April/May. The official said the Finance Ministry is of the viewthat if the process is initiated earlier, there will be noneed for getting a Vote-on-Account and a full Budget can beapproved in 1-stage process before March 31. The proposal before the government is to present theBudget in last week of January, preferably on January 31, andwrap up the entire process by March 31. PTI JDARD