Prime Minister Narendra Modi with Madhya Pradesh Chief Minister Shivraj Singh Chouhan (Photo: PTI)

NEW DELHI: The Madhya Pradesh government has on Tuesday decided to change the state's budget cycle to January-December from the existing April-March cycle.

The new Budget for the state will be presented in December this year.

The move by the Shivraj Singh Chouhan government comes days after Prime Minister Narendra Modi backed the idea and called for a debate at the recently concluded meeting of the NITI Aayog 's governing council.

On April 23, PM Narendra Modi indicated his backing for a January-to-December fiscal year , a move that could entail a reworking of dates for budget presentation and your financial calendar, including filing of tax returns.

"Stating that in a country where agricultural income is exceedingly important, budgets should be prepared immediately after the receipt of agricultural incomes for the year... he (Modi) said there have been suggestions to have the financial year from January to December.

He also urged states to take the initiative in this regard," an official statement on the PM's closing remarks at Niti Aayog's governing council meeting said.

Interestingly, the budget presentation date was also advanced from the last day of February to February 1 this year. Modi had also set up a committee to examine the possibility of changing the financial year, which begins on April 1.

A panel headed by Shankar Acharya, former chief economic adviser, to examine changing the financial year, has already submitted its report to the government.

India follows April-March as the financial year, while globally the calendar year is the financial year.

