Can we include net current transfer …

National domestic income at factor cost = Private final consumption expenditure + Government final consumption expenditure − Net imports + (Gross domestic fixed capital formation + Closing stock − Opening stock) − Depreciation − Net indirect taxes

Net national disposable income = = NDP_FC − Net factor income to abroad + Net indirect taxes + Net current transfers from abroad

Example

National domestic income at factor cost = Private final consumption expenditure + Government final consumption expenditure − Net imports + (Gross domestic fixed capital formation + Closing stock − Opening stock) − Depreciation − Net indirect taxes

National income (NDP_FC) = = 300 + 100 − (−10) + (50 +25 − 25) − 20 − 80 = Rs 360 arab

Net national disposable income = = NDP_FC − Net factor income to abroad + Net indirect taxes + Net current transfers from ROW

Net national disposable income = 360 − 10 + 80 + (−5) = Rs 425 arab