A subsidy is a financial assistance provided by the government to support a specific industry or economic activity. This can help lower the cost of goods or services, making them more affordable for consumers. Subsidies can take various forms, such as direct cash payments, tax breaks, or reduced prices for essential products. Governments often use subsidies to encourage the production of certain goods, like renewable energy or agricultural products. By providing these financial incentives, they aim to promote economic growth, support local businesses, and achieve social goals, such as improving access to basic necessities for the population.