subsidy

subsidy — noun

1. an amount of money that a government or large organization pays to lower the pri

1.nounB2
Definition

an amount of money that a government or large organization pays to lower the price people pay for a product or service, or to help an industry or activity survive

Example

The government provides a housing subsidy to families with low incomes.

collocation: housing subsidy

Minho's university offered a travel subsidy for students doing research abroad.

subsidy + for + noun phrase

Common collocations
  • government subsidy
  • agricultural subsidy
  • housing subsidy
  • receive a subsidy
  • provide a subsidy
  • cut / reduce subsidies
  • subsidy program / scheme
  • subsidy for farmers / students / families
Synonyms
  • grant

    A grant is money given for a specific project or purpose, often one-time; a subsidy is usually ongoing support to reduce costs.

  • allowance

    Allowance suggests a regular personal payment (e.g. from parent or employer); subsidy implies institutional or government support.

  • subvention

    A more formal and less common term, used mainly in academic or cultural funding contexts.

Antonyms
  • tax

    A tax is money paid to the government; a subsidy is money given by the government.

  • surcharge

    A surcharge is an extra cost added to something, the opposite of a subsidy which reduces cost.

Grammar Patterns

subsidy + for + noun phrase

subsidy + to-infinitive

a subsidy / subsidies / subsidy (uncountable)

Usage Note

Frequently used in the plural form 'subsidies' when referring to multiple programs or types of financial support. The uncountable form ('subsidy' without an article) is common in general statements about support systems.

Common Mistakes

My company gives me a monthly subsidy for lunch.
My company gives me a monthly allowance for lunch.
'Allowance' is used for regular personal payments; 'subsidy' usually refers to institutional or government support for a specific purpose.
The artist received a subsidy to paint a mural, which she had to pay back.
The artist received a grant to paint a mural, which she did not have to repay.
'Grant' is a non-repayable fund for a project; 'subsidy' reduces the cost of an ongoing activity or product.

Word family

  • subsidize
    verbB2
  • subsidized
    adjectiveB2
  • subsidizer
    nounC1
  • subsidization
    nounC1

Synonym discussion

Sense: noun/1

All five words refer to sums of money given to support someone or something, but they differ in purpose and source. A 'subsidy' is typically institutional or government money used to reduce the cost of goods, services, or activities so they remain affordable — e.g. a farming subsidy that keeps food prices low. A 'grant' is usually a one-time award for a specific project, like research or the arts, and does not need to be repaid. An 'allowance' is a regular personal payment from a parent or employer (e.g. a child's weekly allowance or a clothing allowance). A 'stipend' is a fixed regular payment made to someone for services that are not a formal salary, such as a PhD student's living stipend. 'Subvention' is the rarest of the five; it is used primarily in formal or academic contexts to describe institutional support, often for cultural or educational programs. While a subsidy reduces costs broadly, a grant funds a project, an allowance supports daily living, a stipend compensates trainees, and a subvention underwrites institutions.

subsidy ↗grant ↗allowance ↗stipendsubvention

Common collocations

Nouns

Adverbs

Phrases

  • a government subsidy program
  • to cut / reduce / phase out subsidies
  • to receive / provide / offer a subsidy

Prepositions

  • subsidy for
  • subsidy from
  • subsidy to

Etymology

LatinAnglo-FrenchMiddle EnglishEnglish

The word 'subsidy' comes from the Latin 'subsidium', meaning 'help, aid, support, or protection'. In medieval times it referred to money granted by the English Parliament to the Crown for special military needs. By the 19th century, the meaning broadened to include any government payment made to support an industry, activity, or group of people for the public good.