Subsidy

Part of speech: noun

Pronunciation: /ˈsʌbsɪdi/

Definitions

1. A financial contribution from the government to aid specific industries or sectors facing difficulties
2. Money provided by a government or organization to help reduce costs for certain businesses or encourage particular economic activities
3. A grant or assistance from public funds intended to lower production expenses or promote sectors needing support

Etymology: The Latin "subsidium" originally meant something close to "reserve troops" or "reinforcements held back in the rear," a sense that makes sense once you see its parts: "sub-" meaning "below" or "from underneath," and "sidere," meaning "to sit" or "settle." Troops sitting in reserve, ready to rise up and support those in front, gave the word its core idea of backing and assistance. The word reached English through Middle English, passing through Anglo-Norman and Old French, where it took forms like "subside" and "subsidie." Its earliest English sense was military and practical, referring to aid or support in a broader sense, and the financial meaning developed from the idea of help supplied to someone in need. Over time, that general notion of support narrowed into the specific sense of money a government provides to keep an industry or sector afloat.

Synonyms: grant, assistance, aid, support, funding

Antonyms: tax, penalty, fine, cost, burden