Subsidy

In economics, a subsidy is generally a monetary grant given by government to lower the price faced by producers or consumers of a good, generally because it is considered to be in the public interest. Sometimes, the term subsidy may also refer to assistance granted by others, such as individuals or non-government institutions, although this is more usually described as charity. A subsidy normally exemplifies the opposite of a tax, but can also be given using a reduction of the tax burden. These kinds of subsidy are generally called tax expenditures or tax breaks.

See also

• Agricultural policy
• Copenhagen Consensus
• Corporate welfare
• Cross subsidy
• Cultural subsidy
• Direct Subsidy Scheme
• Dirty subsidy
• Information subsidy
• Mixed economy
• Pigouvian subsidies
• Wealthfare