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Write explanatory notes on the following terms: (i) Financial innovation. (ii) National budget (iii)Direct taxes.

      

Write explanatory notes on the following terms:
(i) Financial innovation.
(ii) National budget
(iii)Direct taxes.

  

Answers


Kavungya
i. Financial innovation
It is the advancement over time in the financial instruments and payment systems used in the lending and borrowing of funds. These changes, which include innovations in technology, risk transfer and credit and equity generation, have increased available credit for borrowers and given banks new and less costly ways to raise equity capital.

ii. National budget
This is a financial statement containing an estimate of government revenue and expenditure during the coming financial year. It is presented by the minister of finance for approval in the national assembly.

iii. Direct taxes
This are taxes whose incidence and impact falls on the same person. They are progressive in nature i.e. they increase with increase in income.
Kavungya answered the question on May 6, 2022 at 06:15


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