In the context of state governance, what is meant by the term "fiscal year"?

The term "fiscal year" refers specifically to the accounting period that a government uses for its budgeting and financial reporting. This period is not always aligned with the calendar year; instead, it can differ based on the regulations and practices of a state. Typically, it lasts for twelve months and is essential for managing a government’s finances by determining how much revenue is expected, how much will be spent, and ensuring accountability in the use of public funds.

Understanding the fiscal year is critical for comprehending how budgetary decisions impact various state programs and services, and it influences the timing of financial planning, spending, and reporting activities throughout the government. This term plays a pivotal role in ensuring that state finances are managed efficiently and transparently.