Define subsidy in simple words?
Answers
______________Subsidy_______________
The definition of a subsidy is money or grants given by the government to support a project, business or industry, or a grant of money or financial support offered to fund an artist, project or other endeavor.
Subsidy can simply be defined as a certain amount of money or fund granted by the government or any public administrative body to assist any industry or business to operate and induce lower prices for their goods and services.
Explanation:
As stated,subsidies are basically financial assistance provided by the government to enable any economic sector in the economy to operate effectively and maintain a stable financial liquidity.It also further helps to promote economic and social growth in the country.On some occasions,subsidies can also be granted by any private agencies such as the financial support by the NGOs,which are commonly known as implicit subsidies.In Economics,some examples of subsidies include direct cash provision,interest free loans,tax reliefs,accelerated depreciation and so forth.