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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.

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.

Article 14 of the SCM Agreement, entitled 'Calculation of the Amount of a Subsidy in Terms of the Benefit to the Recipient', provides guidance as to how the relevant market shall be identified.

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.

A price for a product that is reduced because the government has paid part of the cost of producing it: Officials told farmers what to grow, bought their crops, and sold them at subsidized prices. (Definition of subsidized price from the Cambridge Business English Dictionary © Cambridge University Press)

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.

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.