The disposable income is an indicative,characterizing the relationship of GDP with other macro-indicators. In addition to the national income, this list also includes: a net domestic product and a personal income. As a percentage, personal disposable income is 71.5 percent of GDP (for example, this figure is noted in the US).
Calculating income can be quite simple. To do this, you need to know such indicators as GDP, depreciation charges, the amount of indirect taxes, the profit of business entities, net of a net interest, as well as dividends, household interest and individual taxes and fees.
By the simplest mathematical operations (addition and subtraction) there is a personal income available. This can be represented as a formula:
Considering the indicators associated with the indicator under consideration, it is necessary to clarify the following.
The net domestic product is obtained as a result ofsubtraction of depreciation from GDP and the amount of indirect taxes, determined less subsidies. This indicator exceeds the available national income.
Personal income includes the total amount of profithouseholds without a deduction of the taxes they paid. At the same time, personal income is the amount that was received after all individual taxes were paid. Thus, the last indicator reflects the part of the GDP received by the state in households for savings and current consumption.
This indicator in market prices is equal to the totalthe amount of gross national income with the addition of the balance of transfers that are received from various non-residents or transferred to them in the form of donations, donations and humanitarian assistance. Thus, it is the accumulating indicator of all sectors of the economy.
This macro-indicator shows the amount of the amount of income that can be used by residents of the state for personal consumer spending or is postponed for the purpose of accumulation.
Personal consumer spending includesall costs associated with the purchase of services and goods by households, as well as the costs of various government organizations and public non-profit institutions that are responsible for servicing households.
As already mentioned above, all macro-indicators are in close relationship with each other and are formed in strict sequence.
Thus, the redistribution of all types of incomeis completed by the formation of disposable income, adjusted by sector of the economy. It differs from the corresponding gross indicator by the amount of social transfers in kind. In the structure of the latter there are the following elements: social benefits expressed in kind (for example, the costs of social security funds for medical care); products of non-commercial nature of state bodies and non-profit organizations that serve households; products purchased directly from producers for the purpose of providing it to households on a free basis or at formal prices.
In general, the amount of disposable income andthe adjusted analogous indicator is the same. This is due to the fact that a direct adjustment is made in the context of the sectors of the state economy. In this case, social transfers in kind should not affect financial and non-financial enterprises.
As for the sectors of public administration andabove non-profit organizations, the amount of disposable income is equal to the difference in the respective value of each individual sector and the amount of transfers of a social nature in kind.
Adjusted income in the household sector can be determined by adding to the amount already received in the previous two transfer sectors.
The macro-indicators indicated in this article are the structural elements of the system of national accounts. With their use, you can solve the following tasks:
The modeling of all macroeconomicprocesses is the relationship of national disposable income with other indicators of the state economy. The models thus created can be used to substantiate financial and management decisions at various levels of the economy (micro, meso- and macro-).
Summarizing the material outlined in this article,it should be noted that the national income available is a resource that can be used in personal consumption of households, as well as state institutions.