Subsidy Policy

A subsidy policy is a government strategy designed to support specific industries or sectors by providing financial aid. This can take the form of direct payments, tax breaks, or grants to reduce costs and encourage production or consumption. For example, subsidies in agriculture can help farmers maintain stable prices for their products, while energy subsidies can promote renewable resources. The goal is often to boost economic growth, create jobs, or make essential goods and services more affordable for consumers. However, subsidies can also lead to market distortions if not managed carefully.