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A subsidy is a benefit given to an individual, business, or institution, usually by the government. It can be direct (such as cash payments) or indirect (such as tax breaks).
Fuel subsidy removal means that the government stops providing financial support to reduce the cost of fuel for consumers. The purpose of removing fuel subsidy is usually to reduce government spending and promote more efficient use of resources.
This could include, for example, a cash payment, relief on business rates charge, a loan with interest below the market rate or free use of equipment or office space. Subsidies should only be given if they are in the public interest, to address a market failure or equity concern.
The subsidy control regime ? a flexible, principles-based approach for the UK. A clear, proportionate and transparent set of principles and rules that make clear which subsidies are permitted and prohibited, and under what circumstances.
Because there are so many industries receiving government assistance, this article will focus on three business sectors that receive subsidies: energy, agriculture, and transportation. Each of these business sectors receives billions of dollars annually from the government.