MACROECONOMICS by Suman Kalyan Chakraborty

Here's an honest effort with a lot of research that has gone into the making of this book and my kudos to the author. I provide the excerpt on the treatment of 'National Income, Capital Formation, Government Expenditure, Tax & Transfer Multiplier' which will entice you further on the remark made above.

National income is total amount paid to factors of production. In other words, it is net national product minus indirect taxes.
J R Hicks thinks national income as a collection of goods and services reduced to a common basis measures in terms of money.
GDP is money value of all goods and services produced in domestic territory of a country in a year's time and GNP is money value of national producton for any specific period of time.
NNP at factor cost is volume of goods and services turned out during an accounting year. N.I at factor cost is total of entire incomes earned by owner of factors of production.
Hence, National Income at factor cost = N.N.P - Indirect Taxes + subsidies
Product method issued to finding out market value of all goods and services manufactured during a year.
Income method refers to gross national income obtained by addition of wages, profit, etc. and also income earned by governmnet either from property or through work.
In case of expenditure method expenditure of consumption and investment on finished products by community are considered.
Problems in estimation of National Income may be conceptual (lack of notion), statistical (lack of statistics), practical (ignorance).
National Income Statistics are useful for policy makers for planning purpose.

Ecnomic welfare is that part of social welfare that can be brought directly or indirectly in relation with the measuring rod of money.
Development of a country is a collective effort because of existance of selfish opportunism and power takes.
In case economic development of entire masses is our objective the greater effort is to be emphasized on material development so that it strengthen major determinant of economic progress.
Due to slow growth rate of manufacturing sector, growth rate fo commodity sector is much low as compared to non-commodity sector.
Agriculture is parking lot for poor and share whatever they may grow there. Thus, growth rate of agricultural sector smaller than non-agricultural sector.
Agriculture is the amin support of our economy. About 60 percent of our polulation deriving their sustenance from it.
Declining share of rural population out of total population to some extent responsible for reverse trend in ratio of rural-urban incomes.
Unorganised sector claims to contribute two-third of NDP as it is found not only in unincorporated but also individually owned and operated except public administration and defence.

We should centralise our attention so that rising proportion of employee compensation can be restricted to some extent to avoid adverse effect of inflation and in instignation of cost-push factors to accelerate inflation.
Equitable distribution of national income is indispensable for all round development of an economy. Otherwise fruits of growth will be distributed among few privileged class only.
Unequal distribution of land is only a partial although fundamental index of inequality. Apart from that aset holding and command over other economic resources also leave their impact in spreading inequlity in an economy.
Policies of Government behind redistribution of income is to attain balanced growth, improvemen t of nutirtional levels among poor masses as well as stimulating productive investment.
Estimation of capital formation can be estimated by way of deducting net exports and consumption from domestic product.In analysing trends of saving - it is studied as how dometic saving become enough to finance developmental needs of the economy.
According to our Planning Commission our rate of saving is comparable to rate in middle income and even some high income as in industrialised countries.