Subsidy
/ˈsʌbsɪdi/
Definitions
- (n.) A financial aid or grant extended by the government to support or promote economic sectors or public services.
The government provided a subsidy to encourage renewable energy development.
- (n.) An inducement, such as a payment or tax relief, given to reduce the cost of producing goods or services.
Farmers received subsidies to lower the price of agricultural products.
Forms
- subsidies
Related terms
See also
Commentary
Subsidy typically involves governmental financial support, and clear drafting should specify the nature, source, and conditions of the aid.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.