Subsidy

The term subsidy refers to fund given by a private person or entity (often by a government) to another private person or entity. Supporters of subsidies often justify their use as intended for some socially beneficial purpose, although economists point out that subsidies may often have socially detrimental effects.

Examples of subsidies include welfare and certain aspects of student loans.

A subsidy exemplifies the opposite of a tax.

See also agricultural subsidy.