subsidy
subsidy
Noun
pl: subsidies
This term describes a financial intervention designed to lower costs or support viability. It carries a connotation of systemic support, often implying a strategic goal such as protecting national interests, ensuring food security, or providing social welfare. In economic discourse, it is frequently contrasted with taxes or tariffs. While a tax increases the cost of a good, this financial aid decreases it, often creating a gap between the market price and the actual cost of production.