Government expenditure does not include transfer payments.

Name: Government expenditure does not include transfer payments.
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Question

Quizplus · Accepted Answer

Transfer payments are payments made by the government to individuals or businesses without the expectation of receiving goods or services in return. Examples include social security benefits, welfare payments, and grants. Since transfer payments do not involve government spending on goods or services, they are not considered part of government expenditure.

Government Expenditure Does Not Include Transfer Payments