The Subsidy reference article from the English Wikipedia on 24-Jul-2004
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Subsidy

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A subsidy is a grant or monetary gift given by a private person or entity (often a government) to another private person or entity, as financial assistance or to help launch an enterprise. 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 normally exemplifies the opposite of a tax, but can also be given using a reduction of the tax burden. This kind of subsidy are generally called tax expenditures.

See also