subvention

Subvention is a form of public financial support provided by a government or public body to a person, enterprise, or organization to promote a public objective or maintain viability of a service. It is often synonymous with subsidy or grant, though usage varies by country and field.

Subventions can take many forms: direct cash grants or subsidies; favorable loan terms or guarantees; tax incentives or exemptions; price supports or input subsidies; in-kind assistance such as equipment or services. They may be unconditional or conditional on criteria like employment, environmental performance, or research outcomes.

Purposes include supporting agriculture and rural development, fostering industrial policy, promoting research and innovation, aiding cultural institutions and the arts, ensuring access to essential services (health, education), and advancing energy transition or regional development.

Economic effects: Subventions can correct market failures and support social objectives, but they can also distort competition, create fiscal costs, and risk dependency or misallocation if poorly targeted. Transparent criteria and regular evaluation are common policy requirements. In global trade, state aid is often subject to rules under the World Trade Organization, and in the European Union there are specific state aid regulations.

In many Francophone jurisdictions, subvention denotes public funding to arts, education, or nonprofit entities; in English usage, subsidies or grants are more common, but subvention remains found in legal or historical contexts.