Transfer payment

[1] Examples of transfer payments include welfare, financial aid, social security, and government subsidies for certain businesses.

However, cash transfer programs are constrained by three factors: financial resources, institutional capacity, and ideology, particularly in countries in the Global South.

[7] In-kind transfer payments consist of individual goods and services provided to households by governmental bodies and non-profit institutions serving households (NPISHs), which are either acquired on the market or produced as non-market output by governmental bodies or NPISHs.

This imbalance is addressed by a horizontal fiscal equalisation (HFE) policy overseen by the Commonwealth Grants Commission.

[10] These transfers are intended to assist provinces with less fiscal capacity than others in providing comparable public services in all regions, including health and education.

[10] Canada's transfer payments originated in the British North America Act (1867)'s Sections 118 as provincial subsidies.

[10] Economist Trevor Tombe wrote that by 2018, transfer payments had become "complex arrangements" that are much larger than the original subsidies and are "more equally distributed".

The government aims to establish a comprehensive, equitable, and unified pension system that covers both urban and rural residents by 2020.

In 2016, the government decided to establish a unified health insurance system for both rural and non-salaried urban residents.

[12] The U.S. still utilizes paper transfer payments in its Social Security administration as many recipients, particularly those in lower-income categories, are unbanked, i.e. do not have a bank account to facilitate direct deposits.