A small nation reports the following major government expenditures for the fiscal year:

1. Salaries for military personnel: $50 billion
2. Payments to retired citizens through a national pension program: $75 billion
3. Construction of new public hospitals: $20 billion
4. Payments made to holders of government bonds: $15 billion
5. Unemployment benefits paid to eligible citizens: $30 billion

From the list above, identify one expenditure that is a 'transfer payment' and one that is 'spending on goods and services'. Explain the fundamental difference between these two types of expenditures that justifies your classification.