Subsidies refer to financial assistance provided by the government to certain industries, businesses, or individuals in order to support their operations, promote growth, or achieve specific policy objectives. Subsidies can take various forms, such as grants, tax breaks, price supports, or low-interest loans. They are often used to stimulate economic development, create jobs, encourage innovation, or address market failures. However, subsidies can also be controversial, as they can distort market competition, lead to inefficiencies, and create dependency on government support. Policymakers must carefully consider the costs and benefits of subsidies when designing and implementing subsidy programs.