Subsidy

/ˈsʌb.sɪ.di/

Meaning & Definition

noun

A financial aid supplied by a government or another organization to support or promote a specific economic activity or sector.

The government provided a subsidy to farmers to help them cope with the rising costs of materials.

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.

The transportation subsidy made it possible for low-income families to travel affordably.

Support or assistance in the form of money that helps reduce the financial burden of certain services.

Many students benefit from a subsidy that covers part of their tuition fees.

Government assistance to businesses or services in order to maintain fairness in trade practices or to support economic growth.

The renewable energy subsidy encouraged more companies to invest in solar and wind power technologies.

Latin 'subsidium', meaning 'support, aid, or assistance'.

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.

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.

A government handout

Some people are critical of subsidies, calling them government handouts.

Free money from the government

Getting a subsidy feels like receiving free money from the government for many.