Fiscal year basics

Government fiscal years differ from calendar years, creating specific cycles for planning and spending. Understanding these cycles helps teams work effectively with public funds.

Key fiscal elements include:

• Year structure: How a government defines its financial year. For example, in Canada, the fiscal year starts on April 1 and ends on March 31 of the following year. Other countries may follow different timelines.
• Spending periods: Key timeframes for using allocated funds, often tied to quarterly targets.
• Budget phases: Distinct stages within the fiscal year, from planning and approval to execution and reporting.
• Timing impacts: How fiscal schedules influence project timelines, including major deadlines and funding availability.

Government organizations must align their work with these fiscal periods. Each phase brings specific requirements and opportunities.

Project planning needs to account for natural spending cycles. Heavy spending typically occurs in Q4 (January-March), while Q1 (April-June) often focuses on new fiscal year planning.^[1]