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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.

Import subsidies are payments by governments on imported goods. The subsidies are paid to both private importers and state import institutions. Import subsidies can help keep prices on domestic markets low.

Countervailable subsidies exist when a foreign government or public entity provides a ?financial contribution? to a company which confers a ?benefit? to the company's production, manufacture, or exportation of merchandise and which is ?specific?.

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.

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.

In the most general terms, a subsidy can be. defined as any government assistance that (i) allows consumers to purchase goods. and services at prices lower than those offered by a perfectly competitive private.

Which Industries Do the U.S. Government Subsidize? The U.S. government heavily subsidizes the domestic agricultural sector. It also subsidizes oil and energy producers, some housing, automakers, and some healthcare (e.g. Medicare).