Financial year

Indian Economy glossary

Also called: Fiscal year · Topic: Government Budget, Fiscal Policy and FRBM · NCERT: Class 12, Ch 5 "Government Budget and the Economy"

Meaning

In India, the financial year, also called the fiscal year, runs from 1 April to 31 March. The Union Budget, which the Constitution calls the Annual Financial Statement, gives estimated receipts and expenditure for this period. Since 2017 the budget has been presented on 1 February. This lets Parliament pass it before 1 April, so money is available from the first day of the year without a stop-gap vote on account.

Example

The Union Budget 2026-27 covers the period from 1 April 2026 to 31 March 2027. Its fiscal deficit target of 4.3% of GDP (budget estimate) applies to that span, not to a calendar year.

Don't confuse with

  • Calendar year: this runs from 1 January to 31 December. India's government accounts do not follow it.
  • Assessment year: in income tax, the income earned in one financial year is assessed and taxed in the next year. That next year is called the assessment year.

Related concepts

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