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What is the meaning of national disposable income?

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National Disposable Income (NDI) is defined as the maximum, the country can afford to spend on consumption goods or services during an accounting year without having to finance its expenditure by disposing of assets or by increasing its liabilities.

National disposable income can be ‘gross’ or ‘net’.

Net National Disposable Income = NNPFC + Net Indirect Taxes + Net Current Transfers from Rest of the World

Gross National Disposable Income = Net National Disposable Income + Depreciation.

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