ranjan

Micro finance is an emerging concept which plays a vital role in the development of low income groups. It acts as building block of our economy. It saves people from the inflating rate of interest. It also has certain shortcomings which must not be overlooked in a developing country like India.  India's annual budget is first a macroeconomic exercise and then a micro one catering to sectors of the economy. Micro budgeting is considered as traditional budget. Micro budgets are a great tools but there are certain flaws in them as mentioned hereunder - In order to do this, one has to spend time looking carefully at spending, dividing into small categories and coming up with realistic targets. This have to be done every month over and over again which adds up to quite a lot of time. Second, it can be pretty inflexible. An unexpected expense can wreck a micro budget making one has to feel like a failure at the end of month. There are life events which one cannot simply control, and micr