transfer payments

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Transfer payments

Payments from a government to its citizens, such as welfare and other government benefits.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Transfer Payment

Money that a government gives to individuals, usually through a social welfare program. For example, elderly people in the United States who have paid FICA taxes for a certain number of years receive a Social Security check from the government every month. This is a transfer payment. Another type of transfer payment is money given to a state or province with the proviso that it will fund the state or province's social welfare programs. For example, under the Personal Responsibility and Work Opportunity Reconciliation Act in the United States, each state receives a certain amount of money from the federal government to fund welfare and similar programs for the poor.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

transfer payments

any expenditure by the government for which it receives no GOODS or SERVICES in return. In the main, such payments involve the ‘transfer’ of income from one group of individuals (taxpayers) to other groups of individuals in the form of welfare provisions, for example, JOBSEEKERS ALLOWANCE, SOCIAL SECURITY BENEFITS, retirement PENSIONS, etc.

Because transfer payments are not made in return for products and services, that is, they do not add to total output, they are not included in the NATIONAL INCOME ACCOUNTS, which measure the money value of national output. See also GOVERNMENT EXPENDITURE, WELFARE STATE, BURDEN OF DEPENDENCY.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
San Francisco, CA, August 20, 2015 --( Global payments platform, Paymentwall, finished integration of SEPA Direct Debit bank transfer payment method to let global merchants and businesses easily receive euro payments.
The company said it also agrees with the government's expectation that most DB to DC transfers will occur at retirement although transfer payments that are suitably enhanced will also be attractive to some members below retirement age.
The results show that decreasing transfer payments by 2% of GDP from the base run stabilizes the debt/GDP ratio.
* A decision to freeze most of the transfer payments during 2008.
Indiana's share of transfer payments has grown from 5.7 percent of all personal income in 1965 to 15.4 percent in 2005 (see Figure 2).
Transfer payments to households are the second largest item of general government consumption.
The function of government as an administrator of transfer payments is good, said Will, because "what we have discovered as people, which constitutes considerable social learning, is that politics on the national level is not that pertinent to the problems of most Americans." Through social learning, the American people also have learned that "our problems are rooted in our culture, not in legislative edicts." Will cited the current presidential election in which education has become an issue.
The third major income category for Montana producers is government transfer payments. The majority of transfer payments are associated with grain production.
This table clarifies the impact of transfer payments and the personal income tax on the distribution of income by quintiles (fifths of the population).
Offsetting these revenues are transfer payments to retirees and administrative expenses.
The February change was boosted by farm subsidy payments and by a speedup of life insurance dividends to veterans (included in transfer payments).