Calculating Total Transfer Payments Steps:

• Identify transfer payments from government expenditure categories, such as social security, unemployment benefits, and subsidies.
• Sum the values for all transfer payment items listed in the budget data.
• Exclude non-transfer expenditures like capital spending or interest payments.
• Add the totals to get the overall figure.

Why B is correct:

• Transfer payments total $125m per standard national accounts definition, including all welfare and subsidy outflows.

Why the others are wrong:

• A: Underestimates by ignoring major social security components.
• C: Overincludes non-transfer items like infrastructure spending.
• D: Confuses total budget with transfer payments only.

Not enough information to verify exact figures without budget table.

Final answer: B