Definition
It may differ from the calendar year. The U.S. federal fiscal year runs from October 1 through September 30.
Political Dictionary
Fiscal Year
A fiscal year is a twelve-month period used for budgeting and accounting.
Why It Matters
It organizes appropriations, revenue reports, agency plans, and financial statements.
How It Works
Budgets and reports assign transactions to the applicable fiscal period.
History
Governments and businesses adopted fiscal years to align accounting with operational cycles.
Example
Federal fiscal year 2027 begins on October 1, 2026.
Common Misconceptions
- Every fiscal year begins in January.
- The federal fiscal year is named for the year in which it begins.
- All states use the federal schedule.
Related Terms
- Fiscal Policy
- Monetary Policy
- Inflation
- Economic Growth
- Government Spending
Related Topics
See Also