Chapter 4 Cash transfers
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Cash transfers are most commonly used mechanisms of income redistribution for most welfare states. However, social policies as a revenue-raising institution confine their use both in scope and in design. When in use, in particular, cash benefits tend to be reserved for the most vulnerable. By definition, they refer to government payments to particular service users and include a wide range of income support benefits, most of which are means-tested. Cash benefits may also include non-means-tested and non-contributory categorical benefits. But they are different from contributory benefits that are based on either social insurance or provident funds. These are primarily designed for horizontal redistribution, seeking to reallocate income across the life cycle, albeit varying degrees.

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