Transfer payment - Definition and Overview

In political science and economics, a transfer payment is a payment of money from a government to an individual, a group or another order of government for which nothing is directly required in return.

In Canada, transfer payments usually refer more specifically 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.

Other examples of transfer payments might include welfare or scholarships.

External links

• Department of Finance (Canada): Federal Transfers to Provinces and Territories (http://www.fin.gc.ca/activty/fedprov-e.html)

Example Usage of Transfer