noun · academic
subsidy
/ˈsʌbsədi/SUB·si·dy
Band 6-7task2task1
financial support paid typically by a government to reduce the cost of a service or production
Examples
“The government introduced a subsidy for renewable energy projects.”
“Farmers rely on subsidies to stay afloat in bad seasons.”
“Removing fuel subsidies often leads to public protests.”
Band 8 sentence
“Targeted subsidies can support emerging industries, but they must be designed to avoid market distortion and dependency.”
Collocations
- government subsidy
- receive a subsidy
- subsidy for
Word family
subsidize verbsubsidised/subsidized adjective
Common mistakes
subsidy to→subsidy for
a subsidies→a subsidy
Say it for a higher band
5support→6financial support→7+subsidy
Synonyms
grant
Easily confused
grant
“The university received a research grant from the foundation.”
Related words
Learn this word with the rest of its set, and get reminded at the right time.
In Shopping & Money
Learn it with its set