What is subsidy

The government gives production subsidies either by providing market price support, direct support or paying for the factors of production.

In this way, the authorities secure producers from any unknown decline in their returns. Consumer Subsidies ordinarily reduce the prices of goods and services in the market. Hence, they give an advantage to the consumers.

These subsidies are common in developing countries where the government wants to provide subsidised things as the most basic needs. Products IT. About us Help Center. Log In Where do you want to login? Sign Up. Income Tax Filing. Expert Assisted Services. Tax Saving. Mutual Fund Investments. GST Software. TaxCloud Direct Tax Software.

Need Help? Governments that grant subsidies often provide them for particular industries, such as farming. The word is most commonly used to refer to such payments. More generally, subsidy can refer to any grant or monetary contribution. More specifically, it can refer to a payment made by one government to another for a particular service, often according to a treaty.

Example: My company received a government subsidy to help expedite the manufacturing of healthcare products. The first records of the word subsidy come from the s. Subsidies are often designed to help provide funds to companies in a particular industry, with the goal of helping that industry thrive—so it can provide jobs or otherwise stimulate economic growth.

There are different kinds of subsidies, but the word is usually associated with government payments. Such payments are sometimes called government subsidies. The U. What are some other forms related to subsidy? Subsidy is most commonly associated with government payments to help certain industries.

Now Congress has refilled it. Is subsidy used correctly in the following sentence? These subsidies may help billion-dollar corporations, but we should determine if they help everyday citizens. She imposed a company-wide 30 percent pay cut on about workers in July even after receiving tax cuts and employment subsidies from the government designed to help companies survive the pandemic. Definition of subsidy. Synonyms for subsidy Synonyms allocation , allotment , annuity , appropriation , entitlement , grant , subvention Visit the Thesaurus for More.

Examples of subsidy in a Sentence The city is increasing subsidies for public transit. Goodman, Forbes , 12 Oct. First Known Use of subsidy 14th century, in the meaning defined above. Learn More About subsidy. Time Traveler for subsidy The first known use of subsidy was in the 14th century See more words from the same century.

Style: MLA. English Language Learners Definition of subsidy. Get Word of the Day daily email! Test Your Vocabulary.