Transfer payment

Transfer payment

In political science and economics, a transfer payment is a payment of money from a government to an individual for which no good or service is required in return. In economics, government transfer payments can be considered a negative tax, since in the case of a tax, the government charges individuals without getting any good or service in direct exchange.

Transfer payments are separated into two categories based on their reliance on the recipient’s income level. Payments that are dependent on the income of the recipient are means-tested transfers and include examples such as welfare, Medicaid, Supplemental Security Income (SSI), food stamps, head start, housing assistance, and public support for students, including scholarships and financial aid and death benefits for parents. Social insurance transfers are transfer payments that are not dependent on the income of the recipient, and include social security payments, Medicare, publicly-funded pensions and unemployment insurance.

Alternative use for administrative transfer

In some federal systems the term is also used to refer to payments from one order of government to another; for example in Canada, transfer payments usually refer to a system of payments from the federal government to the provinces. Major Canadian transfer payments include equalization payments, the Canada Health Transfer and the Canada Social Transfer (formerly the Canada Health and Social Transfer) and Territorial Formula Financing.

They are sometimes referred to as income transfers

ee also

*Public finance
*Government budget

External links

* [ Department of Finance (Canada): Federal Transfers to Provinces and Territories]

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • transfer payment — ➔ payment * * * transfer payment UK US noun [C or U] US FINANCE, GOVERNMENT, TAX ► TRANSFER INCOME(Cf. ↑transfer income) …   Financial and business terms

  • transfer payment — n. a disbursement for which neither goods nor services have been given in return; specif., a disbursement by a government in the form of welfare or a subsidy …   English World dictionary

  • transfer payment — transfer income A payment made or income received in which no goods or services are being paid for. Pensions, unemployment benefits, subsidies to farmers, etc. , are transfer payments; they are excluded in calculating gross national product …   Big dictionary of business and management

  • Transfer Payment — 1. In the United States, a payment made to individuals by the federal government through various social benefit programs. 2. In Canada, a payment made to the provinces and territories by the federal government. 1. Transfer payments are made by… …   Investment dictionary

  • transfer payment — 1. any payment made by a government for a purpose other than that of purchasing goods or services, as for welfare benefits. 2. any money received that is neither a payment for goods or services nor investment income. [1940 45] * * * …   Universalium

  • transfer payment — noun Economics a payment by a government not made in exchange for goods or services, such as a benefit payment or subsidy …   English new terms dictionary

  • transfer payment — trans′fer pay ment n. 1) ban any payment made by a government for a purpose other than that of purchasing goods or services, as for welfare benefits 2) can. (in Canada) a payment from the federal to a provincial government • Etymology: 1940–45 …   From formal English to slang

  • transfer payment — noun Date: circa 1945 1. a public expenditure made for a purpose (as unemployment compensation) other than procuring goods or services usually used in plural 2. plural money (as welfare payments) that is received by individuals and that is… …   New Collegiate Dictionary

  • transfer payment — noun a public expenditure (as for unemployment compensation or veteran s benefits) that is not for goods and services • Hypernyms: ↑outgo, ↑spending, ↑expenditure, ↑outlay …   Useful english dictionary

  • transfer income — UK US noun [C or U] UK (US transfer payment) FINANCE, GOVERNMENT, TAX ► money from the government in the form of benefits (= payments for people who cannot find a job or are too ill to work), subsidies (= money given to reduce the cost of… …   Financial and business terms

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