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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.

A subsidy is money that is paid by a government or other authority in order to help an industry or business, or to pay for a public service. European farmers are planning a massive demonstration against farm subsidy cuts.

Two of the most common types of individual subsidies are welfare payments and unemployment benefits. The objective of these types of subsidies is to help people who are temporarily suffering economically.

Definition: Subsidy is a transfer of money from the government to an entity. It leads to a fall in the price of the subsidised product. Description: The objective of subsidy is to bolster the welfare of the society. It is a part of non-plan expenditure of the government.

The most common type of subsidy is a production subsidy, which reduces the costs of producing a good or service. This can be done by providing tax breaks or direct payments to businesses. Another common type of subsidy is a consumption subsidy, which reduces the cost of consuming a good or service.

The federal government has long subsidized farmers, notably during the Great Depression, paying farmers to stop producing certain crops to eliminate surpluses and allow prices?and thus income for millions of farmers (25 percent of the nation's population in 1930)?to rise.

Production subsidy This type of subsidy is provided in order to encourage the production of a product. In order for manufacturers to increase their production output, the government compensates for some of its parts in order to lessen their expenses while increasing their output.