ABSTRACT
§ 1. The division of public expenditure into grants and purchase prices, corresponds to that of public income into taxes and selling prices. 130 An individual, who receives public money or money's worth,may or may not render in return a directquid pro quo to the public authority. In the former case the public authority makes a purchase from him; in the latter case it makes him a grant. This grant may consist either of money, or of services, such as medical treatment or education or the security presumed to be derived from armaments or police. Thus payments by a public authority to any of its employees, by way of salaries and wages, or to contractors, are purchase prices. On the other hand, payments of old age pensions, poor relief, or contributions out of general revenue to schemes of health and unemployment insurance, are grants.
