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Subsidies are payments, tax breaks, or other forms of economic support given by governments to certain industries or economic sectors. The goal of subsidies is to aid or support what are deemed to be key parts of the economy or national infrastructure.

Subsidies come in various forms including: direct (cash grants, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, accelerated depreciation, rent rebates).

To pay part of the cost of something: £50 would help to subsidize the training of an unemployed teenager. The refugees live in subsidized housing provided by the authorities. All private universities are subsidized by the government.

Key Takeaways. A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut. In economic theory, subsidies can be used to offset market failures and externalities to achieve greater economic efficiency.

A. : to purchase the assistance of by payment of a subsidy. b. : to aid or promote (someone or something, such as a private enterprise) with public money. subsidize soybean farmers.

Subsidized and subsidised are both English terms. Subsidized is predominantly used in ?? American (US) English ( en-US ) while subsidised is predominantly used in ?? British English (used in UK/AU/NZ) ( en-GB ). In the United States, there is a preference for "subsidized" over "subsidised" (99 to 1).

Payments to both commercial firms and low-income individuals are examples of direct subsidies. This could include housing allowances, food vouchers for low-income families, or payments to private businesses as ?cash in the bank? payments.