Subsidy

Subsidy
A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public.

Politics play an important part in subsidization. In general, the left is more in favor of having subsidized industries, while the right feels that industry should stand on its own without public funds.

There are many forms of subsidies given out by the government, including welfare payments, housing loans, student loans and farm subsidies. For example, if a domestic industry, like farming, is struggling to survive in a highly competitive international industry with low prices, a government may give cash subsidies to farms so that they can sell at the low market price but still achieve financial gain.

If a subsidy is given out, the government is said to subsidize that group/industry.


Investment dictionary. . 2012.

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Synonyms:
, , / (granted by one Government to another),


Look at other dictionaries:

  • subsidy — sub‧si‧dy [ˈsʌbsdi] noun subsidies PLURALFORM [countable] FINANCE ECONOMICS money that is paid by a government or organization to make something such as a particular food or product cheaper to buy, use, or produce: • Billions of dollars were… …   Financial and business terms

  • Subsidy — Sub si*dy, n.; pl. {Subsidies}. [L. subsidium the troops stationed in reserve in the third line of battlem reserve, support, help, fr. subsidere to sit down, lie in wait: cf. F. subside. See {Subside}.] 1. Support; aid; co[ o]peration; esp.,… …   The Collaborative International Dictionary of English

  • subsidy — I noun allotment, allowance, backing, bounty, contribution, gift, grant, grant in aid, stipend, subsistence, subvention associated concepts: government subsidy II index aid (help), aid (subsistence) …   Law dictionary

  • subsidy — (n.) late 14c., from Anglo Fr. subsidie, from O.Fr. subside help, aid, contribution, from L. subsidium help, aid, assistance, (military) reinforcements, from sub behind, near (see SUB (Cf. sub )) + sedere to sit (see SEDENTARY (Cf. sedentary)) …   Etymology dictionary

  • subsidy — *grant, subvention, *appropriation …   New Dictionary of Synonyms

  • subsidy — [n] money given to help another aid, alimony, allowance, appropriation, assistance, bequest, bonus, bounty, contribution, endowment, fellowship, financial aid, gift, grant, gratuity, help, honorarium, indemnity, payment, pension, premium, reward …   New thesaurus

  • subsidy — ► NOUN (pl. subsidies) 1) a sum of money granted from public funds to help an industry or business keep the price of a commodity or service low. 2) a sum of money granted to support an undertaking held to be in the public interest. 3) a grant or… …   English terms dictionary

  • subsidy — [sub′sə dē] n. pl. subsidies [ME < Anglo Fr subsidie < L subsidium, auxiliary forces, reserve troops, aid, support < subsidere, to sit down, remain: see SUBSIDE] a grant of money; specif., a) a grant of money from one government to… …   English World dictionary

  • Subsidy — In economics, a subsidy (also known as a subvention) is a form of financial assistance paid to a business or economic sector. A subsidy can be used to support businesses that might otherwise fail, or to encourage activities that would otherwise… …   Wikipedia

  • subsidy — /sub si dee/, n., pl. subsidies. 1. a direct pecuniary aid furnished by a government to a private industrial undertaking, a charity organization, or the like. 2. a sum paid, often in accordance with a treaty, by one government to another to… …   Universalium

  • subsidy — noun ADJECTIVE ▪ big, generous, heavy, huge, large, massive ▪ small ▪ direct ▪ …   Collocations dictionary

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