- Transfer payment
A payment of money by the government to an individual that does notform part of an exchange but rather represents a gift without anythingbeing received or required in return. Examples of transfer paymentswould include student scholarship grants, welfare checks, and socialsecurity benefits. Establishing programs providing for transferpayments from the budget to particular favored categories of thepopulation represent one of the most direct ways in which a governmentmay pursue policies of income redistribution.
Transfer payment: A Glossary of Political Economy Terms (2024)
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