What Does The Word Subsidize?

What’s another word for subsidized?

In this page you can discover 38 synonyms, antonyms, idiomatic expressions, and related words for subsidy, like: endowment, bequest, gift, bonus, gratuity, taxis, surplus, foreign aid, income, incentive and price support..

Why do governments subsidize?

Governments seek to implement subsidies to encourage production and consumption in specific industries. … Since the government helps suppliers through tax credits or reimbursements, the lower overall price of their goods and services is more than offset by the savings they receive.

Why are subsidies bad for the economy?

By aiding particular businesses and industries, subsidies put other businesses and industries at a disadvantage. … The result is a diversion of resources from businesses preferred by the market to those preferred by policymakers, which leads to losses for the overall economy.

What is the opposite of a subsidy?

Opposite of a grant or contribution of money. forfeit. hindrance.

What’s another word for contributes?

In this page you can discover 100 synonyms, antonyms, idiomatic expressions, and related words for contribute, like: add, donate, give away, subscribe, chip in, kick in, bring, lead, give, share and furnish.

What are subsidized goods?

A subsidy or government incentive is a form of financial aid or support extended to an economic sector (business, or individual) generally with the aim of promoting economic and social policy. … Consumer/consumption subsidies commonly reduce the price of goods and services to the consumer.

Who gets subsidies from the government?

Most subsidies are cash grants or loans that the government gives to businesses. It encourages activities the government wishes to promote. The subsidy depends on the amount of the goods or services provided. One level of government can also give subsidies to another.

What is the opposite of subsidize?

Opposite of to provide with money for a particular purpose. defund. disendow. disapprove.

What does it mean to subsidize a product?

Subsidies on products are subsidies payable per unit of a good or service produced or imported. The subsidy may be a specific amount of money per unit of quantity of a good or service, or it may be calculated ad valorem as a specified percentage of the price per unit.

Is subsidy good or bad?

In short, any subsidy that benefits women, the poor and the marginalised is good; their growth propels national growth. … Similarly, subsidies for loans given for secondary agriculture initiatives reduce the burden on primary agriculture activities, and also help whittle down disguised unemployment in the agri-sector.

What does the government subsidize?

Government subsidies are financial grants extended by the government to private institutions or other public entities, in order to stimulate economic activity or promote activities that are in the public good.

Is a cut in subsidies always good for the economy class 12?

(Q6) ‘ A cut in subsidies puts the government in a dilemma ”. Comment. Ans: Yes, because if the government reduces subsidies it will affect the poor class , the farmers i.e., the common man. But if it does not do so, the rich class also benefits and puts enormous strain on the limited government resources.

Does a subsidy need to be paid back?

Grants are sums that usually do not have to be repaid but are to be used for defined purposes. Subsidies, on the other hand, refer to direct contributions, tax breaks and other special assistance that governments provide businesses to offset operating costs over a lengthy time period.

Why subsidies should not be given?

But in case of subsidized items, people do not feel the heat of prices going up. The demand of those items continues to grow without control. When demand grows price will also grow. Subsidies defeat the concept of demand-supply balance.