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Modi is planning to adopt a 150-year-old practice to drive India

According to the updates it was found out that our prime minister MR. NARENDRA MODI  is planning to back a plan  of adopting a 150-year-old policy   that goes behind fixing your Budget and the financial calendar, including your tax returns,  to accelerate  the economy on the path of development.

He is now trying to replace the January-to-December fiscal year instead of the current Financial year — from April to March — that was adopted in 1867, principally to align the Indian financial year with that of the British government. this policy was actually administered 150 years back which is according to Modi again will be soon trending.  He is pushing for a

So we gone through, the concept behind this changes in the economy:-

A positive effect on farmers                                                            As agricultural sector is the most important part  known as backbone of our  country so it seems that this is the biggest driving factor behind the  suggestion is that the financial year timing did not allow India to account  for the impact of monsoon rains. Agriculture contributes more than 15% to  India’s GDP and above 58% rural households depend on farm yields.  Assuming there is drought, which is the norm between June and  September, a change in the accounting period will help in better farm  allocation.

Rest of the world follows this                                                       The current global practice as most big economies follow the January-    December cycle. As a matter of fact, 156 nations follow calendar year as  financial year. Even top firms and agencies such as World Bank and IMF  use the calendar year for data reporting. It makes sense as India  integrates itself with the world economy. Foreign firms don’t have to  struggle with two types of financial years, here and at their parent country,  which means better business for us.

optimum utilization of resources                                               Another argument is that the current setup does not allow proper utilization of the working seasons and does not keep into mind the national culture and habits, because of which there is a direct impact on data collection for national accounts.

It takes into account our weather                                         Accordingly, any financial year, a Niti Aayog-backed panel points outs, will be affected by the behavior of the South West Monsoon in the preceding financial year as well as the one which falls within the financial year itself. The panel wants the Budget to be finalized in October, after the South West monsoon is over – when the kharif crop is known and the rabi crop could be estimated. 

A lot of changes apart from budget planning:-                              Apart from changing the Budget date, India will have to rework its tax  assessment year, reorganize tax infrastructure, including at firm level and,  probably even tweak the Parliament session timings. But relax, it won’t  change your tax payment schedule.

Let’s not forget that GST is round the corner too                             If Modi government decides to go for it now, it may clash with the GST  roll out planned for this year. That could be too much to ask from firms  and  government departments who are still trying to figure out how to align  themselves with the big tax reform.

And most importantly, some states may not be up to it    Maharashtra, a BJP-run state, had raised concern over this plan, saying    that it will consume a lot of administrative and manpower time, especially  when they are trying to cope with the GST roll out and Plan and non-Plan    expenditure merger.

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The post Modi is planning to adopt a 150-year-old practice to drive India appeared first on Mcr World.



This post first appeared on Share Market News In Hindi, please read the originial post: here

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