subsidy

sub·si·dy

noun \ˈsəb-sə-dē, -zə-\

plural sub·si·dies

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

Related to SUBSIDY

Synonyms: allocation, allotment, annuity, entitlement, grant, appropriation, subvention

Related Words: aid, assistance, block grant, grant-in-aid, set-aside; foreign aid, relief, state aid; advance, allowance, benefit, bequest, endowment, fund, legacy, stipend, trust, trust fund

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Other Economics Terms

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