Meaning & Definition of word "Subsidy"
Subsidy
/ˈsʌb.sɪ.di/
noun:
- 1. A financial aid supplied by a government or another organization to support or promote a specific economic activity or sector.
- Example: The government provided a subsidy to farmers to help them cope with the rising costs of materials.
- 2. A sum of money granted by an authority to assist an industry or business so that the price of a commodity or service may remain low or competitive.
- Example: The transportation subsidy made it possible for low-income families to travel affordably.
- 3. Support or assistance in the form of money that helps reduce the financial burden of certain services.
- Example: Many students benefit from a subsidy that covers part of their tuition fees.
- 4. Government assistance to businesses or services in order to maintain fairness in trade practices or to support economic growth.
- Example: The renewable energy subsidy encouraged more companies to invest in solar and wind power technologies.
Etymology
●Latin 'subsidium', meaning 'support, aid, or assistance'.
Common Phrases and Expressions
agricultural subsidy:
Financial aid specifically for farmers or agricultural production.
energy subsidy:
Monetary assistance aimed at reducing the costs of energy production or consumption.
housing subsidy:
Financial assistance provided to help reduce the cost of housing for low-income individuals or families.
Related Words
grant:
A sum of money given by an organization for a particular purpose.
assistance:
The action of helping someone or providing support.
financial aid:
Monetary assistance given to individuals or institutions.
Slang Meanings of subsidy
Meaning: A government handout
● Example Sentence: Some people are critical of subsidies, calling them government handouts.
Meaning: Free money from the government
● Example Sentence: Getting a subsidy feels like receiving free money from the government for many.