Business / Agriculture / Subsidy: A direct or indirect benefit granted by a government for the production or distribution (including export) of a good or to supplement other services. Generally, subsidies are thought to be production and trade distorting, resulting in an inefficient use of resources. Arguably, subsidies may be justified on grounds that they adjust for nonmarket considerations that are as important as market values. This term also is used to refer to federal reimbursements for meals served through child and elderly nutrition programs.
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Other Words for Subsidy

Subsidy Verb Synonyms: funding, financing, subsidizing, sponsoring, sponsorship, assistance, aid, contribution, support, grant, subvention, maintenance, underwriting, capitalization

Producer Subsidy Equivalent (PSE)

Business / Agriculture / Producer Subsidy Equivalent (PSE): A measure of the value of monetary transfers to agricultural producers resulting from agricultural policies in a given year. It includes both transfers from consumers of agricultural products (through MORE

Interest Subsidy

Business / Finance / Interest Subsidy: The value of a firm's deduction of the interest payments on its debt from its earnings before calculation of its tax bill under current tax law. MORE

Handset Subsidy

Technology / Cell Phones / Handset Subsidy: Frequently, a wireless company will sell a phone (handset) below cost, with the hope of making up the loss later on customer usage fees. The amount of loss per handset is called the handset subsidy. MORE