"We do not eat expensive food."
Translation:हम महँगा खाना नहीं खाते।
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है (along with its other forms like हैं, हूं) is the present tense form of the verb 'to be' and is used to indicate that a sentence is in the present tense.
When you have a negative sentence (containing नहीं) the use of है is optional.
The only exception is when the sentence does not consist of any other verb (eg: हम बुरे नहीं हैं - 'we are not bad' should compulsorily have a हैं)
पैसे (plural of पैसा) means 'money'. (It actually refers to a unit of currency which is a hundredth of a rupee but is more often used as the general word for money)
It cannot be used as 'expensive' by itself in standard Hindi though you can say things like 'पैसे ज़्यादा हैं' to say something like the cost is more.
But of course, it may be regional usage or a dialect.