Secondary income distribution account

The secondary income distribution account shows how the balance of the primary income of an economy, institutional unit or sector is transformed into their disposable income through the receipt and payment of current transfers, excluding social transfers in kind. The purpose of the account is to reflect the maximum amount that a sector or the country’s economy as a whole can spend on the consumption of goods or services in the reporting period in order to finance its expenses by reducing cash, other financial or non-financial assets, or increasing liabilities at constant net worth).