Subsidies

Definition

Subsidies are financial assistance or incentives provided by the government to individuals, businesses, or industries to support their activities or promote desired outcomes. They can take the form of direct payments, tax breaks, grants, or low-interest loans.

Related terms

Welfare State: A welfare state refers to a system where the government provides various social programs and benefits such as healthcare, education, housing, and unemployment benefits through subsidies.

Agricultural Subsidies: Agricultural subsidies are financial aids given by governments to farmers or agricultural producers to support their income levels or ensure food security.

Industrial Policy: Industrial policy involves government interventions aimed at promoting specific industries or sectors through measures like subsidies, tax incentives, research funding, or infrastructure development.