Question

which is the spending heads were it is. difficulty to reduce expenditure?
please ans don't write any think please give ans fast

Answer 1

Transfer payments are not expenditures infact they are the payments in exchange of which no factor services are employed. That is, such payments are made with the mere motive of transferring the purchasing power to a specific section of the society such as old persons, students, destitute women, etc. Some of the example of transfer payments are old age pension, unemployment allowance, etc. are transfer payments. Therefore, they increase the disposable income of the consumers and not reduce it.