Definition of Subsidy:

  1. A subsidy takes the form of a payment, provided directly or indirectly, to the receiving individual or business entity. Subsidies are generally seen as a privileged type of financial aid, as they lessen an associated burden that was previously levied against the receiver, or promote a particular action by providing financial support.

  2. A sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.

  3. A parliamentary grant to the sovereign for state needs.

  4. Economic benefit (such as a tax allowance or duty rebate) or financial aid (such as a cash grant or soft loan) provided by a government to (1) support a desirable activity (such as exports), (2) keep prices of staples low, (3) maintain the income of the producers of critical or strategic products, (4) maintain employment levels, or (5) induce investment to reduce unemployment. The basic characteristic of all subsidies is to reduce the market price of an item below its cost of production. Also called subvention.

  5. Indirect financial contribution by a firm to its employees, such as low cost meals or free transportation. Also called benefit.

  6. A subsidy is a benefit given to an individual, business, or institution, usually by the government. It is usually in the form of a cash payment or a tax reduction. 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.

Synonyms of Subsidy

TLC, Accouterment, Aid, Alimony, Allotment, Allowance, Annuity, Armament, Assistance, Backing, Bounty, Bread, Capitalization, Care, Carriage, Carrying, Catering, Chandlery, Contribution, Daily bread, Deficit financing, Depletion allowance, Dole, Economic support, Endowment, Equipment, Fellowship, Financial assistance, Financial backing, Financial support, Financing, Finding, Fitting out, Funding, Furnishing, Furnishment, Gift, Grant, Grant-in-aid, Grubstake, Guaranteed annual income, Help, Investment, Keep, Livelihood, Living, Logistics, Maintenance, Manna, Meat, Moral support, Mothering, Nourishment, Nurture, Old-age insurance, Outfitting, Patronization, Paying the bills, Pecuniary aid, Pension, Preparation, Price support, Procurement, Providing, Provision, Provision of capital, Provisioning, Psychological support, Public assistance, Public welfare, Purveyance, Reinforcement, Reliance, Relief, Replenishment, Resupply, Retailing, Retirement benefits, Reward, Scholarship, Security blanket, Selling, Sponsorship, Stake, Standing treat, Stipend, Subsidization, Subsidizing, Subsistence, Subvention, Supply, Supplying, Support, Supportive relationship, Supportive therapy, Sustaining, Sustainment, Sustenance, Sustentation, Tax benefit, Tender loving care, Treat, Upholding, Upkeep, Victualing, Welfare, Welfare aid, Welfare payments

How to use Subsidy in a sentence?

  1. A farm subsidy.
  2. However, critics of subsidies point to problems with calculating optimal subsidies, overcoming unseen costs, and preventing political incentives from making subsidies more burdensome than they are beneficial.
  3. A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut.
  4. In return for granting subsidies, Parliament demanded ever new powers from the monarchy.
  5. For decades, the federal government has provided a subsidy to corn producers in order to lower the price of corn and products containing corn for consumers.
  6. In economic theory, subsidies can be used to offset market failures and externalities in order to achieve greater economic efficiency.
  7. Michelles organization was running a deficit, so when the new financial year began, they accepted a government subsidy in order to lower their costs.
  8. The recent farm subsidy had been a boon for the two potato farmers who had been forced to endure a financial loss for the drought which had caused disappointing crop yields.

Meaning of Subsidy & Subsidy Definition