<P> A subsidy is a form of financial aid or support extended to an economic sector ( or institution , business , or individual ) generally with the aim of promoting economic and social policy . Although commonly extended from government , the term subsidy can relate to any type of support -- for example from NGOs or as implicit subsidies . Subsidies come in various forms including : direct ( cash grants , interest - free loans ) and indirect ( tax breaks , insurance , low - interest loans , accelerated depreciation , rent rebates ) . </P>
<P> A subsidy is a form of financial aid or support extended to an economic sector ( or institution , business , or individual ) generally with the aim of promoting economic and social policy . Although commonly extended from government , the term subsidy can relate to any type of support -- for example from NGOs or as implicit subsidies . Subsidies come in various forms including : direct ( cash grants , interest - free loans ) and indirect ( tax breaks , insurance , low - interest loans , accelerated depreciation , rent rebates ) . </P>
where does the money for subsidies come from
where does the money for subsidies come from
government
government