The goal of subsidies is to aid or support what are deemed to be key parts of the economy or national infrastructure.
A subsidy, also known as a government incentive, is a type of financial aid or support provided to an economic sector (business or individual) with the goal of promoting economic and social policy. Although commonly extended by the government, the term subsidy can refer to any type of assistance, such as that provided by NGOs or as implicit subsidies. Subsidies can be either direct (cash grants, interest-free loans) or indirect (tax breaks, insurance, low-interest loans, accelerated depreciation, rent rebates).
Subsidies are generally provided by the government to specific industries with the goal of keeping product and service prices low so that people can afford them while also encouraging production and consumption.
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