Transfer expenditures are the unreturned (outright) expenditures and have no direct effect on the national income. They only cause purchasing power to shift among private individual or social stratums. These shifts are performed unreturned, and there are no changes on the flow of goods and services within national economy. In other words, the transfer expenditures made by public sector do not refer to consumption of real sources. These expenditures transfer purchasing power from public sector to other sectors. Increases in the total expenditure volume in economy are not caused by transfer expenditures made by the state, but the expenditures made by social stratums benefiting from these state expenditures. It simply means that if public expenditures do not create the flow of goods and services in economy, they are called as transfer expenditures.