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DISPOSABLE INCOME

Statistics Directorate    
French Equivalent: Revenu disponible

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.

Context:
Disposable income is defined by the Canberra Group as total income less current transfers paid. Such transfers comprise: employers’ social insurance contributions; employees’ social insurance contributions; taxes on income; regular taxes on wealth; regular inter-household cash transfers; and regular cash transfers to charities .

This measure of income is usually the preferred measure for income distribution as it is more free of the impact of the institutional arrangements in relation to total income.

Disposable income is also a closer approximation of receipts available for individual and household consumption (Final Report and Recommendations of Expert Group on Household Income Statistics, The Canberra Group, 2001, pages 22 and 24).

Source Publication:
SNA 8.11.

Cross References:
Income – SNA

Hyperlink:
http://esa.un.org/unsd/sna1993/introduction.asp

Statistical Theme: National accounts

Created on Monday, November 05, 2001

Last updated on Tuesday, March 04, 2003