National disposable income refers to the total income available to the residents of a country for both spending and saving during a year. It is calculated by adding national income at market prices to the net current transfers received from the rest of the world. This income represents the total amount the nation has at its disposal to use as it chooses, whether for consumption or saving.
It is calculated as:
National Disposable Income = Net National Product at Market Prices (NNP at MP) + Net Current Transfers from Abroad
