Transfer Payment
Transfer payments refer to the payment made by the government to individuals, businesses, or other levels of government without any corresponding goods or services being received in return. These payments are typically made for social welfare programs, subsidies, grants, or other forms of financial assistance. Transfer payments can be classified as either revenue expenditure or capital receipts based on their nature and purpose.

Revenue Expenditure
Revenue expenditure refers to the expenses incurred by the government in its day-to-day operations and in providing public services. These expenditures are recurring in nature and do not result in the creation of assets or reduction of liabilities. Examples of revenue expenditure include salaries and wages, interest payments, subsidies, grants, pensions, and transfer payments.

Transfer payments are considered as revenue expenditure because they are made to fulfill the social welfare objectives of the government and are not aimed at creating any long-term assets or reducing liabilities. These payments are recurring in nature and are typically made on a regular basis to support individuals or organizations in need. The government allocates a certain budget for transfer payments in order to provide financial assistance to vulnerable sections of society, promote economic development, or support specific industries.

Capital Receipts
Capital receipts, on the other hand, refer to the funds received by the government through the sale of assets, borrowings, or other forms of capital transactions. These receipts result in an increase in the government's capital or reduction in its liabilities. Examples of capital receipts include proceeds from the sale of land, disinvestment in public sector enterprises, loans received from external sources, or repayment of loans by other entities.

Transfer payments do not fall under the category of capital receipts because they do not involve any capital transactions or result in an increase in the government's assets or reduction in its liabilities. Instead, they represent an outflow of funds from the government's revenue resources to fulfill its social welfare objectives.

Conclusion
In conclusion, transfer payments are considered as revenue expenditure because they are made to fulfill the social welfare objectives of the government and do not involve any capital transactions or the creation of long-term assets. These payments are recurring in nature and are aimed at providing financial assistance to individuals, businesses, or other levels of government without any corresponding goods or services being received in return.