Subsidies are financial support provided by the government to help businesses or individuals. They can lower the cost of goods and services, making them more affordable for consumers. For example, a government might give a farm a subsidy to encourage the production of crops, which can help keep food prices stable. These payments can also promote certain industries, like renewable energy, by making it cheaper to produce solar panels or wind turbines. By providing subsidies, governments aim to boost economic growth, create jobs, and support important sectors that benefit society as a whole.