transfer payments

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Transfer payments

Payments from a government to its citizens, such as welfare and other government benefits.

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.

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.

References in periodicals archive ?
com)-- 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 experiments consist of decreasing transfer payments from the base run beginning in 2013:1.
A decision to postpone returning most of the transfer payments to their 2001 level--after they were cut by 4% in 2002.
Indiana's share of transfer payments has grown from 5.
The main reason is the decline in transfer payments to households.
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.
The state's leading agricultural county is Chouteau County, which is also the number one county in the sale of crops and associated government transfer payments.
In addition, MRQ will sometimes transfer payments made for one type of tax or tax period as an offset against a tax liability or period different from the one intended by the taxpayer.
Transfer payments and a progressive personal income tax modify the market distribution of income in ways that reduce inequalities.
Between 1988 and 1993, total transfer payments for Medicaid rose from 10 percent to more than 16 percent of state and local government expenditures.
5% of total personal income (TPI) comes from government transfer payments such as Social Security and Medicare, and another 25.