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A '''subsidy''' is a payment by government to certain businesses to help them survive or to give them a competitive advantage.  Sometimes the subsidy can be direct, as in the case of cash payments to farmers, and sometimes it can be indirect, as in the case of building a transcontinental railroad.

A '''subsidy''' is a payment or tax break by government to certain businesses to help them survive or to give them a competitive advantage.  Sometimes the subsidy can be direct, as in the case of cash payments to farmers, and sometimes it can be indirect, as in the case of building a transcontinental railroad.

Subsidies can also be given out by individuals or non-governmental institutions, but this is more commonly referred to as charity.

Subsidies can also be given out by individuals or non-governmental institutions, but this is more commonly referred to as charity.