Skip to main content

Micro v/s Macro finance

 Microfinance

1) A microfinance is a narrow concept that includes various services like microcredit, micro-savings, micro-insurance, and many more schemes.

2) The purpose of microfinance is to help the small section of the society like low-income level people or a below poverty line who are not able to serve their needs just because of unavailability of the fund.

3) Those who are not able to take financial help by the conventional way of putting security as a guarantee.

4) A microfinance helps people to start their own business by proving finance with a low rate of interest and help to make them independent.

Macro finance

1) Macro finance is a broad concept and works on a large scale and its advantages are widespread.

2) Macro finance is an initiative which deals with the large section of an economy and covers all the financial need and how to provide it to the needed one.

3) A macro-finance includes drafting policy, subsidies, multi-year expansion plans.

4) The main aim of macro-finance is to help an economy to grow and to generate employment and expand an economy.

5) A government provides macro-finance in any form to the business like tax benefits or a subsidy because it will benefit the economy in the future.




Comments

Post a Comment

Popular posts from this blog

Public expenditure

 There are two important aspects of Public Finance, viz., Public Revenue and Public Expenditure, This department of public finance received scant attention at the hands of writers on public finance throughout the 19th century. Attention was almost exclusively focused on public revenues. It is only in the present century that it came to be realized that public expenditure is no less important in its implications and bearing on public welfare than public revenue. The main reason for the early neglect of the subject of public expenditure seems to be that the amount of public expenditure was very small as the field of governmental activity was restricted. Now public expenditure has reached astronomical figures. In recent times, public expenditure has increased enormously. The main reason is that the functions of the state have increased manifold. In the past, the state was regarded only as a police state concerned with defense from foreign aggression and maintenance of law and order wi...
Post a Comment
Read more