Subsidies are financial assistance provided by the government to support specific industries or activities. They can take various forms, such as direct cash payments, tax breaks, or reduced prices for goods and services. The main goal of subsidies is to encourage production, lower prices for consumers, or promote economic growth in certain sectors.
Governments often use subsidies to help industries like agriculture, renewable energy, or education. For example, a government might provide subsidies to farmers to ensure food security or to companies developing solar energy technologies to promote environmental sustainability.