To start with, tax levied by the government to the households is the major source of the government revenue. As a result, in most countries if not in all, it is mandatory for all income earners to pay a certain amount of money to the government as tax, which depends on individual’s level of income.

As such not the total personal income amount gets to the owner, but he/she gets a remainder (disposable personal income) after taxes have been deducted.  DPI is the total amount of money available to the households for use, after payment of government tax from their total personal income (investopedia.com). The higher the DPI, the higher the economical level of a country and the reverse holds.

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