Subsidies are a form of financial assistance provided primarily by the government to support various sectors of the economy. Their main objective is to ensure smooth operations within these sectors and to help maintain financial stability. Additionally, subsidies play a vital role in promoting both economic and social development within a country.

While most subsidies are government-driven, they can also be offered by private organizations. For example, financial support from NGOs is often considered an implicit subsidy.

In economics, common types of subsidies include direct cash transfers, interest-free loans, tax exemptions or reliefs, accelerated depreciation benefits, and more.