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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.

Meanings

Nounsubsidy

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.

"The government provided a huge subsidy to the farming industry to keep food prices stable."

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Last Updated: June 18, 2026Report an Error