GAO Glossary of Terms and Definitions (September 2005)

Transfer Payment

(Economics Term)

A payment made for which no current or future goods or services are required in return. Government transfer payments include Social Security benefits, unemployment insurance benefits, and welfare payments. Taxes are considered transfer payments. Governments also receive transfer payments in the form of fees, fines, and donations from businesses and persons. (See also National Income and Product Accounts.)

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