A subsidy is financial assistance provided by government to individuals or businesses with the aim of promoting certain behaviors or outcomes beneficial for society.
Related terms
Grant: A sum of money given by an organization, especially a government, for a particular purpose.
Tax Credit: An amount that can be offset against a tax liability. It’s like getting a discount on your taxes!
Protectionism: The economic policy of restricting imports from other countries through methods such as tariffs on imported goods. This can act as a form of subsidy for domestic industries.