subsidier

Subsidier is a verb used in several languages, notably French, meaning to provide financial support or subsidies from a government or other authority to a person, company, industry, or project. In English, the standard verb is subsidize (British spelling subsidise) and the related noun is subsidy. The concept covers a range of official assistance designed to influence production, prices, consumption, or welfare.

Subsidies can take multiple forms. Direct subsidies include cash grants, loans on favorable terms, or price rebates. Indirect subsidies include tax credits, exemptions, or depreciation allowances that reduce the cost of investment or operation. Price subsidies set a lower price for a good or service to make it affordable, while input subsidies reduce the cost of essential inputs such as energy, fertilizer, or transportation. Subsidies can be targeted to specific sectors (for example agriculture, manufacturing, or renewables) or to particular groups (low-income households, exporters, or researchers). They may be temporary or long-standing and can be delivered through budgets, legislation, or regulatory measures.

The rationale for subsidies ranges from stabilizing markets and supporting strategic industries to promoting social welfare and certain environmental or research objectives. Critics point to fiscal costs, market distortions, inefficiencies, and the risk of dependency or corruption. In international trade, subsidies are subject to rules under agreements like the WTO, which prohibit or discipline certain types of subsidies perceived to distort competition.

See also: subsidy, subsidization, fiscal policy, trade policy.