TELANGANA WOULD be the second state after Madhya Pradesh to make calendar year as the financial year, replacing the present April-March cycle. Chief Minister K Chandrasekhar Rao said on Tuesday that in tune with the Centre’s plans, Telangana will be shifting to calendar year from 2018.
“Telangana government is planning to make the calendar year as financial year, replacing the present April-March cycle in tune with Centre’s thought process,” CM Rao said.
The chief minister on Tuesday held discussions with Finance Minister E Rajender and senior officials of the Finance and Planning Department regarding the change in format. He asked them to visit Madhya Pradesh and study how the budget is being presented in the new format.
Madhya Pradesh became the first state on May 2 this year to abolish the British system and introduce the calendar year (January 1 to December 31) for budget and government planning. The Centre had recently sought opinion from states regarding the shift to a new format. Officials said that changing the accounting period would help in better allocations towards agriculture sector, in case of drought or crop failures, which is common in Telangana. Prime Minister Narendra Modi had made the proposal at the third governing council meeting of NITI Aayog held in April.