Definition of: subsidy

(sub′sə·dē) noun plural ·dies
1. Pecuniary aid directly granted by government to an individual or private commercial enterprise deemed beneficial to the public.
2. Formerly, an aid or tax granted by the House of Commons to the king for urgent needs of the kingdom.
3. Any financial assistance afforded by one individual or government to another. [<AF subsidie, OF subside <L subsidium auxiliary forces, aid <subsidere SUBSIDE] Synonyms: aid, allowance, bonus, bounty, gift, grant, indemnity, pension, premium, reward, support, subvention, tribute. A nation grants a subsidy to an ally, pays a tribute to a conqueror. An indemnity is a single reparation demanded for a specific injury, while a tribute may be exacted indefinitely. A nation may also grant a subsidy to its own citizens as a means of promoting the public welfare; as, a subsidy to a steamship company. The somewhat rare term subvention is especially applied to a grant of governmental aid to a literary or artistic enterprise. The word bounty may be applied to almost any regular or stipulated allowance by a government to a citizen or citizens; as, a bounty for enlisting in the army, a bounty for killing wolves, a land bounty to encourage settlement of sparsely populated areas. A bounty is reward for a single act; a pension is earned by long service.