subsidy

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Government payment or concession granted to a state or private company, or an individual. A subsidy may be provided to keep prices down, to stimulate the market for a particular product, or because it is perceived to be in the public interest.

The payment of subsidies may distort the market, create shortages, reduce efficiency, or waste resources that could be used more beneficially elsewhere. Export subsidies are usually condemned because they represent unfair competition.

Many countries provide subsidies for transport systems and public utilities such as water, gas, and electricity supplies.

Subsidies are also given for art, science, and religion when they cannot be self-supporting to the standards perceived desirable.

Red and white were the colours of the Inca Empire. Red represents the blood shed in the fight for independence. White stands for peace and justice. Effective date: 25 February 1825. >>