Transfer payments are government payments or benefits paid to specific groups of people or organizations to achieve social or economic purposes. These benefits are financed from public funds and are used to improve the living conditions of certain groups of people or to promote social goals.
Examples of transfer payments are social benefits such as the citizen’s allowance, child benefit, housing benefit or pension payments. Subsidies for companies or agricultural subsidies are also forms of transfer payments. In the context of the AVGS claim, it is mainly a question of citizen’s allowance or benefits for entrepreneurs who have to top up their income.
The idea behind transfer payments is to balance the distribution of income and wealth in society and to create social justice. Transfer payments should also help to strengthen social cohesion and ensure social security for people in need.
