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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.

Governments sometimes keep prices artificially high, which is the case with subsidies intended to boost the incomes of farmers. They may offer services, such as a university education or a subway ride, at below cost. They may pay some of the interest on loans used to finance construction of a road or a power plant.

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.

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).

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.

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.