Switching fiscal year to Jan-Dec will benefit exporters: Min

PTI

As the government readies plan to merge railway budget with the general budget and switch to January-December financial year, Minister of State for Finance Arjun Ram Meghwal said the move will benefit the industry and exporters.

"What do you think about the Railways budget merger with the general budget," Minister of State for Finance Arjun Ram Meghwal asked industry bodies Merchants' Chamber of Commerce and Calcutta Chamber of Commerce.

"We are taking these inputs as consent of yours towards the same", he said. He also explained the benefits of the decision.

The minister took feedback of the chambers on switching to January-December year instead of April-March.

"Most of the countries have January-December year. And exporters will get benefit directly in their accounts maintenance," Meghwal said.

He also sought to take the pulse of the members' on the two proposals of the Centre.

The finance ministry has also set up a committee under former Chief Economic Adviser Shankar Acharya to examine the desirability and feasibility of having a new fiscal year. The committee has been asked to submit its report by December 31.

Meanwhile, Meghwal said the Finance Ministry has met RBI and has pegged inflation to be in the range of 2 per cent to 6 per cent in the next five years.

"We have had a detailed discussion with RBI on the inflation issue. We have prescribed a mechanism of 4 per cent for next five years. There may be a plus, minus 2 percentage point change. We will not allow inflation to go beyond this limit," he said.