Disposal income/ National disposable income

Content

The personal disposable income is one of the key economic indicators because it defines the amount of money that individuals have available for spending and saving after deducting income taxes.

Summed up to the national disposable income it reflects the overall state of the national economy.

Definition

"Disposable income is derived from the balance of primary incomes of an institutional unit or sector by adding all current transfers, except social transfers in kind, receivable by that unit or sector and subtracting all current transfers, except social transfers in kind, payable by that unit or sector; it is the balancing item in the Secondary Distribution of Income Account." OECD, Paris

National disposable income: "National disposable income may be derived from national income by adding all current transfers in cash or in kind receivable by resident institutional units from non-resident units and subtracting all current transfers in cash or in kind payable by resident institutional units to non-resident units." OECD, Paris

Gross national disposable income: "Gross national disposable income may be derived from gross national income by adding all current transfers in cash or in kind receivable by resident institutional units from non-resident units and subtracting all current transfers in cash or in kind payable by resident institutional units to non-resident units." OECD, Paris

Examples