a grant paid by a government to an enterprise that benefits the public
"a subsidy for research in artificial intelligence"
Financial support or assistance, such as a grant.
"The government provided a subsidy to help farmers cover their crop insurance costs."
In plain English: A subsidy is money given by the government to help businesses or people pay for something they need but can't afford on their own.
"The government provides a subsidy to help farmers pay for their seeds and equipment."
Usage: A subsidy refers to financial aid provided by the government to individuals or businesses to lower costs and encourage specific activities. Unlike general grants which may have no strings attached, subsidies are often tied to particular industries like agriculture or energy production.
The word "subsidy" entered English via Middle and Anglo-Norman French from the Latin subsidium, which originally meant support or assistance. This Latin term is built on roots meaning "to sit below," reflecting its initial sense of aid provided to help someone rise again.