Isnt this answer wrong as if NIT is an example of transfer payments by citizens to government without reference to - Economics - National Income Accounting

Question

Isnt this answer wrong as if NIT is an example of transfer
payments by citizens to government without reference to any direct
benefit in return then subsidies should also be transfer income by
government to citizens as the citizens dont give any direct benefit
to government in returm???

Payal Goyal · Accepted Answer

Dear Student,
No , this question is correct NIT and transfer payments are the two
different things Transfer payments are money given by government
for poor people and not for production purposes In this question ,
subsidies are given for production purposes and these are not
considered as transfer payments Subsidies are the part of NIT (
Taxes-subsidies)
Hope this information will clear your doubts on this topic
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Isnt this answer wrong as if NIT is an example of transfer payments by citizens to government without reference to any direct benefit in return then subsidies should also be transfer income by government to citizens as the citizens dont give any direct benefit to government in returm???