transfer payment

n. A noncompensatory government payment to individuals, as for welfare or social security benefits.

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. It is not reckoned when calculating the national income as it is money transferred rather than paid for merchandise or a service rendered

trans′fer pay`ment

n. 1. any payment made by a government for a purpose other than that of purchasing goods or services, as for welfare benefits. 2. (in Canada) a payment from the federal to a provincial government. [1940–45]

Thesaurus

Noun

transfer payment - a public expenditure (as for unemployment compensation or veteran's benefits) that is not for goods and servicesexpenditure, outgo, outlay, spending - money paid out; an amount spent

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 payment