Define Transfer Payments. Back to glossary index. Any payment made by a government for a purpose other than that of purchasing goods or services as for welfare benefits 2.
Transfer payments redistribute wealth by transferring money from one group to another. The term transfer payments refers to payments made from one entity to another where no goods or services are exchanged or expected in return. This is a transfer payment.
In economics government transfer payments are often thought of as a negative tax since in the case of a tax people pay the government.
Transfer payment n social welfare usually plural money received by an individual or family from the state or other body often a pension or unemployment benefit. Where an employers covenant is judged to be strong and any funding shortfall is being remedied over a reasonably short period trustees should not normally reduce cetvs. A transfer payment from the standpoint of government finance is a payment of money or in kind benefit such as food stamps that is given to individuals by the government without the government. Learn the words you need to communicate with confidence.