Disposable income

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Disposable income is an internationally recognized concept from the System of macroeconomic accounts. Disposable income is defined as the sum of all incomes received by the residents of a given territory, minus current transfers paid by them to other institutional sectors, including governments (income tax and contributions to social insurance plans) and financial corporations (contributions to defined-benefit pension plans). Therefore, disposable income is the amount available to individuals for final consumption of goods and services and for voluntary savings.

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