The Finance Ministry has set up a four-member committee to look into the prospect of changing the financial year, reported the Economic Times. The panel, headed by former Chief Economic Advisor Shankar Acharya, will submit their report to the government by December. At present, a financial year is calculated from the 1st of April to 31st March the following year.

The panel comprises former Cabinet Secretary KM Chandrasekhar, former Tamil Nadu Finance Secretary PV Rajaraman and Rajiv Kumar, who is a fellow at the Centre for Policy Research. According to the ministry, the panel will study the "desirability and feasibility" of changing the cycle of financial year besides calculating the effects of such a reform on the economy including agriculture, businesses, taxation systems and procedures, statistics and data collection, and budget work.

"The Committee may, after due examination of all relevant factors, recommend the date for commencement of the financial year which in its view is the most suitable for the country," the ministry said in a notification.