subsidy

The word “subsidy” means money given, often by a government, to support an industry, activity, or lower a price. In plain terms, financial help, usually from government, to support a business, activity, or lower cost for consumers.

“Subsidy” is pronounced SUHB-sih-dee (/ˈsʌbsɪdi/ in IPA).

Here is “subsidy” used in a sentence: “Farmers received a subsidy to help offset the cost of fuel.”

The opposite of “subsidy” — its antonyms — is tax.

“Subsidy” is a noun.

The word “subsidy” comes from Latin. From Latin subsidium, "support, assistance" — from sub- ("below") plus sīdō ("to sit, settle"), the sense of a reserve force sitting in support.

“Subsidy” is an uncommon word in modern English, usually learned at around the C2 level.

A subsidy is money provided, often by a government, to support an industry or activity or to lower the price of a good or service, while a grant is typically a one-time award given for a specific project or purpose. Subsidies are usually ongoing and tied to production or consumption, whereas grants are often project-based.

A subsidy is a direct payment of financial support, while a tax break reduces the amount of tax owed rather than handing over money upfront. Both can lower costs for a business or industry, but only a subsidy involves an active payment.

Governments give subsidies to support industries they consider important, encourage particular activities, or make goods and services more affordable for the public.