C1nounformal10K+

Subsidy

UK /["/ˈsʌbsədi/"]/US /["/ˈsʌbsədi/"]/

Definition

money that is paid by a government or an organization to reduce the costs of services or of producing goods so that their prices can be kept low

In simple words: Money given by the government to help support a business or service.

Examples

  • agricultural subsidies
  • to reduce the level of subsidy
  • Export subsidies have been reduced by 20 per cent.
  • The Arts Council granted them a small subsidy.
  • The help that the government gives the industry amounts to an indirect subsidy.
  • The EU spends billions on subsidies to farmers every year.
  • protests against the removal of subsidies on basic commodities
  • state subsidies for rice producers
  • subsidies on basic goods and services

Usage notes

Typically used in economics and politics. It's more appropriate in formal discussions about government funding and less common in casual conversation.

Grammar pattern

subsidy + object

Memory hint

Think of 'sub-' meaning under, and 'sidy' as helping - like supporting something underneath.

Collocations

  • big
  • generous
  • heavy
  • amount
  • level
  • get
  • receive
  • lose
  • payments
  • scheme
  • system
  • subsidy for
  • subsidy on
  • subsidy to
  • a cut in subsidies
  • a reduction in subsidies
  • the abolition of subsidies

Synonyms

  • grant
  • support
  • aid
  • assistance
  • financial aid

Antonyms

  • tax
  • fee

Common mistakes

  • Confused with 'subsidize' as a verb.
  • Misuse as a countable noun without understanding it is often uncountable in general use.
  • Used in informal contexts where a simpler term like 'help' would suffice.