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subsidy

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noun sub·si·dy \ˈsəb-sə-dē, -zə-\

Simple Definition of subsidy

  • : 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

Full Definition of subsidy

plural sub·si·dies

  1. :  a grant or gift of money: asa :  a sum of money formerly granted by the British Parliament to the crown and raised by special taxationb :  money granted by one state to anotherc :  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



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