Meaning & use

subsidy

noun·Academic

Last updated

UK/ˈsʌbsədi/
US/ˈsʌbsədi/

Meanings

  1. nouncountable

    Money paid by a government or organization to reduce the cost of a product or service.

    Grammar: Countable: a subsidy, subsidies. Often followed by 'for' or 'on': a subsidy for farmers, a subsidy on fuel.

    Patterns

    • a subsidy for something
    • a subsidy on something
    • government subsidy

    The government provides a subsidy for renewable energy projects.

    Farmers receive subsidies to grow certain crops.

    The subsidy on public transport keeps fares low.

  2. nouncountable or uncountable

    Financial support given to an organization or activity to help it continue.

    Grammar: Can be countable (a subsidy) or uncountable (rely on subsidy). Often used in the plural: arts subsidies.

    Patterns

    • rely on subsidy
    • cut subsidies
    • increase subsidies

    The theater depends on a subsidy from the city council.

    The company would not survive without subsidy.

    The government announced cuts to subsidies for the arts.

Word forms

pluralsubsidies

Common combinations

government subsidy
The industry relies heavily on government subsidies.
subsidy for
They applied for a subsidy for their housing costs.
subsidy on
The subsidy on electric cars has been reduced.
cut subsidies
The new budget cuts subsidies for fossil fuels.
receive a subsidy
Small businesses can receive a subsidy to hire apprentices.

Synonyms and how they differ

grant
A grant is money given for a specific purpose, often to individuals or researchers, and usually does not have to be repaid; a subsidy is typically from a government to lower prices or support an industry.
allowance
An allowance is a regular sum given for personal use or expenses; a subsidy is larger-scale support for an activity or industry.
funding
Funding is a general word for money provided for a project; a subsidy is a specific type of financial support from a government or organization.

Opposites

Word family

subsidize verb
To pay a subsidy to support something.
subsidized adjective
Supported by a subsidy.

Commonly confused: subsidy or subsidiary?

subsidy vs subsidiary

A subsidiary is a company owned by a larger company; a subsidy is money given as support.

Practice

The government introduced a new ______ to help small farmers.

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