Why does US fiscal year starts on October?

The U.S. fiscal year starts on October 1 and runs through September 30 of the following year. This timing was established by the Congressional Budget and Impoundment Control Act of 1974, which aimed to streamline the federal budgeting process. Starting the fiscal year in October allows time for the completion of annual budget proposals and reviews, coinciding with the end of the traditional fiscal year used by many businesses and organizations. Additionally, it provides a clear separation between the federal fiscal cycle and the calendar year.