BUSINESS

Panel to look into feasibility of new fiscal year

The Centre said it has set up a committee, headed by former CEA Shankar Acharya, to examine the “desirability and feasibility” of having a new financial year, replacing the existing April—March period.

The committee, which will submit its report by December, will examine merits and demerits of various dates for commencement of a financial year, including the existing dates (April—March), according to a Finance Ministry statement.

Besides Mr. Acharya, the members of the committee are former Cabinet Secretary K M Chandrasekhar, former Finance Secretary Tamil Nadu P.V. Rajaraman and Centre for Policy Research Senior Fellow Rajiv Kumar.

The committee will have to provide reasoning for the suitability of the financial year from the point of view of correct estimation of receipts and expenditure of central and state governments. It also has to state its effect on the different agricultural crop periods and the relationship of financial year to the working season.

Besides, the committee will also have to analyse its impact on businesses, taxation systems and procedures, statistics and data collection and the convenience of the legislatures for transacting budget work. 'The committee will also have to provide the government with the studies made in the past on the desirability of change in financial year. — PTI