Question

What do you mean by term subsidy 5 marks

Answer 1

Definition: Subsidy is a transfer of money from the government to an entity. It leads to a fall in the price of the subsidised product.  

Description: The objective of subsidy is to bolster the welfare of the society. It is a part of non-plan expenditure of the government. Major subsidies in India are petroleum subsidy, fertiliser subsidy, food subsidy, interest subsidy, etc.