Prime Minister Narendra Modi’s proposal of shifting the fiscal year to January-December has been accepted by Madhya Pradesh which makes it the first state of India to implement the change by releasing its next annual budget in December this year.

Mr. Narendra Modi has put forth this idea in the third council meeting of NITI (National Institution for Transforming India) Aayog with the view of resolving certain economic issues. He justified his idea with many valid reasons that would benefit our economy and flourish it. As the January-December period is in well accordance with our climatic cycle and harvesting seasons, it will benefit our farmers as well as our exports.

Also the problems faced by government in collection of important statistical data pertaining to the monsoons and agricultural income will be resolved. Many countries follow the January-December fiscal year and this will help us develop better deals with them. Also in the past many of the government schemes and initiatives couldn’t be delivered to its fullest due to the improper time management. The shift will look after such problems. Many foreign businesses taking place in India would feel the shift convenient for them.

Though there will be loads of changes in taxation laws for the change to implement, but the economic benefits incurring by this shift is very significant.