Government programs and policies intended to encourage certain types and forms of industry, and thus giving them an advantage in the marketplace. Providing cheap irrigation water to farms is an example of a subsidy.
Current unrequited payments made by governments to enterprises on the basis of the levels of their production activities or the quantities or values of the goods and services that they produce, sell or import.
Grants of money made by the government to either a seller or a buyer of a certain product or service, thereby altering the price or cost in a way which affects the output. Governments usually make payments to domestic producers to offset partially their costs of producing and selling certain goods and services. Subsidies are commonly used to support infant firms just entering a new market, to bail out older firms suffering from intensified competition, and to provide support for sectors(such as farming) deemed essential
Government financial support for a domestic sector, thereby protecting the domestic market from imports, and making the sector more competitive internationally. They might do this through a straightforward grant or by exempting certain sectors from tax.
A financial contribution by a government which confers a ‘benefit'. In certain cases, such as a cash grant, the existence of a benefit and its valuation will be clear. In most cases, however, the issue of benefit will be more complex. For example, when a loan or an equity infusion or the purchase by a government of a good is deemed to confer a benefit. A subsidy is defined as a government programme or activity that transfers a benefit to an individual not-for-profit organisation, or a selected group of organisations, beyond what would normally be provided by the marketplace. Two key elements are: Economic advantage – there is a benefit being provided at less than commercial terms; and Selectivity – the Government is exercising some discretion in selecting which organisation or individual(s) will receive the benefit. (See also under contracts, grants.)- How much additional funding is needed to ensure this will work
refers to financial aid given by the government to individuals or groups to encourage certain sections of the population to improve their skills or businesses so as to be locally and globally competitive.
Incentives or guarantees given to dealers, usually in order to boost a car's residual value and/or cut interest rates (and thus reduce your monthly payments). A lease with subsidies is also called a "subvented" lease.