Subsidy: Definition, Usage & Real-World Examples

Meaning 1：financial assistance (subsidy)

subsidy 🔊

/ˈsʌbsɪdi/

Money given by the government or an organization to help reduce the cost of goods or services, so more people can afford them.

financial assistance 🔊

➕

/faɪˈnænʃəl əˈsɪstəns/

A sum of money provided by a government or organization to reduce the cost of goods or services, making them more affordable for people.

📁 Category：Social Economy 🔖 Level：Intermediate

📘 Details & Usage

📖 Root Explanation

From Latin 'subsidium' (aid), from 'sub-' (under) + 'sidere' (to sit), implying support.

💡 Mnemonic

SUBway SIDes with you – a subsidy provides financial support to help you out.

📖 Example

To encourage the use of public transport, the city subsidizes bus tickets, making them much cheaper for commuters. 🔊 The city provides financial aid for bus tickets to promote the use of public transport, reducing costs for daily travelers.

🔗 Collocations

government subsidy – financial aid provided by the government to support industries or individuals

agricultural subsidy – support given to farmers to stabilize food production and prices

export subsidy – financial incentive offered to boost sales of goods in foreign markets

🔄 Synonyms

grant (n.) – a sum of money given for a specific purpose, often by a government or foundation

allowance (n.) – a regular amount of money provided for a particular use or need

subvention (n.) – a grant or subsidy, especially from a government or organization

🚫 Antonyms

tax (n.) – a compulsory payment levied by the government on income or goods, reducing disposable income

fine (n.) – a penalty payment imposed for violating rules or laws

🌱 Derivatives

subsidize (v.) – to provide financial support to reduce the cost of something

subsidization (n.) – the act or process of providing subsidies

📖 Cultural Story

Derived from Latin 'subsidium', meaning 'reserve troops' or 'aid', used in ancient Rome for military support. Evolved to denote financial assistance from governments, common in modern economic policies like agricultural or energy subsidies.