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What's the meaning of subsidy?

Author

Mia Moss

Published Mar 12, 2026

What's the meaning of subsidy?

A subsidy is a benefit given to an individual, business, or institution, usually by the government. The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy.

Considering this, what is the definition of a subsidy?

A subsidy is a benefit given to an individual, business, or institution, usually by the government. The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy.

Likewise, what is a subsidy example? Subsidy definitions

When the government gives a tax break to a corporation who creates jobs in depressed areas, this is an example of a subsidy. When the government gives money to a farmer to plant a specific farm crop, this is an example of a subsidy. Financial assistance given by one person or government to another.

Also to know is, what does subsidy mean in history?

Subsidy, subvention are both grants of money, especially governmental, to aid private undertakings. A subsidy is usually given to promote commercial enterprise: a subsidy to manufacturers during a war.

What is another word for subsidy?

In this page you can discover 38 synonyms, antonyms, idiomatic expressions, and related words for subsidy, like: endowment, bequest, gift, taxis, surplus, foreign aid, income, incentive, price support, expenditure and revenue.

Is subsidy good or bad?

In short, any subsidy that benefits women, the poor and the marginalised is good; their growth propels national growth. Subsidies on medical equipment or medicines ensure healthcare for the poor, especially in a country like India that is bedeviled by a rickety rural healthcare infrastructure.

What are the advantages of subsidies?

When government subsidies are implemented to the supplier, an industry is able to allow its producers to produce more goods and services. This increases the overall supply of that good or service, which increases the quantity demanded of that good or service and lowers the overall price of the good or service.

Is a tax cut a subsidy?

Tax breaks are often considered to be a subsidy. Like other subsidies, they distort the economy; but tax breaks are also less transparent, and are difficult to undo.

Does a subsidy have to be paid back?

Grants are sums that usually do not have to be repaid but are to be used for defined purposes. Subsidies, on the other hand, refer to direct contributions, tax breaks and other special assistance that governments provide businesses to offset operating costs over a lengthy time period.

Why are government subsidies bad?

By aiding particular businesses and industries, subsidies put other businesses and industries at a disadvantage. This market distortion generates losses to the economy that are not easily seen and thus generally aren't considered by policymakers.

Why does government give subsidies?

Basically, subsidies are provided by the government to specific industries with the aim of keeping the prices of products and services low for people to be able to afford them and also to encourage production and consumption.

What is subsidy in Tagalog?

The English word "subsidy" can be translated as the following words in Tagalog: 1.) abuloy - [noun] small contribution; contribution; financial contribution; financial assistance; aid; relief fund; subsidy 2 Example Sentences Available » more 2.) subsidiyá - [noun] subsidy more

What do you mean by incentives and subsidies?

The term “incentive', generally means encouraging productivity. These incentives normally aim at reducing some of the problems faced by small scale industrialists. Subsidy: Subsidy is a financial assistance or a sum of money provided by a government, to an industry for public welfare or interest.

What is the difference between subsidy and subvention?

Definition: Subvention refers to a grant of money in aid or support, mostly by the government. Subsidy is a transfer of money from the government to an entity.

Where do subsidies come from?

Subsidies are provided by both federal or national governments and local governments. The United States is technically a free market, but direct subsidies provided by the U.S. government influence market prices and economic growth greatly.

How do subsidies affect the economy?

domestic consumers pay a higher price for a product that they are blocked from sourcing at a lower price from the world market. this leads to welfare losses for consumers. domestic producers are direct beneficiaries from the policy, since their production has expanded as a result of the subsidy.

Why are corn subsidies bad?

They harm small farmers by excluding them from subsidies, raising land prices, and financing farm consolidation. They increase trade barriers that reduce incomes in America and in lesser-developed countries. They are falsely promoted as saving the family farm and protecting the food supply.

What is a subsidy and why is it important to cultural development?

A cultural subsidy is a payment from the government to specific cultural industries to ensure that some public policy purpose in culture (e.g. multiculturalism, bilingualism, minority and languages, and preservation of traditional dance, music, food, art or other practices) are preserved and maintained in society.

What is capital subsidy?

1. A subsidy that covers a share of the upfront capital cost of an asset (such as a solar water heater).

What are the disadvantages of subsidies?

Disadvantages of government subsidies
  • It would be expensive; the government would have to raise a significant amount of tax revenue.
  • There is an argument that when government subsidises firms, it reduces incentives for firms to cut costs.

What is subsidy and how does it work?

Subsidy refers to the discount given by the government to make available the essential items to the public at affordable prices, which is often much below the cost of producing such items. Specific entities or individuals can receive these subsidies in the form of tax rebate or cash payment.

What industries get the most government subsidies?

Key Takeaways. While many industries receive government subsidies, three of the biggest beneficiaries are energy, agriculture, and transportation.

What is the difference between a tax and a subsidy?

While a tax drives a wedge that increases the price consumers have to pay and decreases the price producers receive, a subsidy does the opposite. A subsidy is a benefit given by the government to groups or individuals, usually in the form of a cash payment or a tax reduction.

What is the opposite of a subsidy?

What is the opposite of subsidize?
repudiateannul
renegerenounce
repealretract
revokenullify
recallrecant

What is another word for clientele?

In this page you can discover 20 synonyms, antonyms, idiomatic expressions, and related words for clientele, like: following, patrons, clients, customers, dependents, purchasers of goods, purchasers of services, trade, buyers, shoppers and constituency.

How do you use subsidy in a sentence?

Subsidy sentence examples
  1. The company receives a heavy subsidy from the national government.
  2. The state controls all ecclesiastical appointments, decides on the passing or rejection of all decrees of the Holy See, and provides an annual subsidy for maintenance of the churches and clergy.

What is another word for providing?

In this page you can discover 77 synonyms, antonyms, idiomatic expressions, and related words for provide, like: contribute, deliver, grant, provide with, equip, indulge with, furnish, transfer, fit, proffer and render.

What is surplus synonym?

Synonyms for
  • excess.
  • leftover.
  • unused.
  • over.
  • spare.
  • supernumerary.
  • odd.
  • remaining.

What is an antonym for aid?

aid. Antonyms: oppose, resist, counteract, discourage, thwart, withstand, confront, deter, baffle. Synonyms: help, assist, succour, support, befriend, co-operate, contribute favor, foster, protect, abet, encourage, instigate, subsidize.

What is a synonym for government?

government. Synonyms: authority, command, control, domination, dominion, empire, law, loyalty, obedience, order, rule, sovereignty, submission, supremacy.

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