noun sub·si·dy \ˈsəb-sə-dē, -zə-\

: money that is paid usually by a government to keep the price of a product or service low or to help a business or organization to continue to function

plural sub·si·dies

Full Definition of SUBSIDY

:  a grant or gift of money: as
a :  a sum of money formerly granted by the British Parliament to the crown and raised by special taxation
b :  money granted by one state to another
c :  a grant by a government to a private person or company to assist an enterprise deemed advantageous to the public

Examples of SUBSIDY

  1. The city is increasing subsidies for public transit.
  2. <government subsidies for farmers in case of crop failure>

Origin of SUBSIDY

Middle English subsidie, from Anglo-French, from Latin subsidium reserve troops, support, assistance, from sub- near + sedēre to sit — more at sub-, sit
First Known Use: 14th century

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer


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