subsidise

Subsidise means to provide financial support to a person, organization, industry, or activity, usually by public funds, in order to lower costs, raise production, or influence behavior. A subsidy is the payment or advantage given. The term is common in British English; the American form is subsidize.

Subsidies take many forms, including direct cash payments, price supports, tax credits or exemptions, cheap loans or guarantees, and public-buying preferences. They may be targeted to specific sectors (for example agriculture, energy, or transport), to support consumers (housing or healthcare subsidies), or to promote research and development.

Proponents argue subsidies can foster social goals, stabilize prices, develop nascent industries, or accelerate transition to new technologies. Critics contend subsidies can distort markets, waste public money, create dependency, and encourage rent-seeking. Effective policies typically require clear objectives, rigorous evaluation, transparency, and sunset clauses or performance criteria.

Common examples include agricultural subsidies, energy or renewable-energy subsidies, housing subsidies, and subsidised student or transport services. International trade rules, notably the WTO's Agreement on Subsidies and Countervailing Measures, govern how governments may support industries, and prohibit or discipline certain subsidies that cause unfair competition.