Subsidy, n.; pl. Subsidies.
Etymology: [L. subsidium the troops stationed in reserve in the third line of battlem reserve, support, help, fr. subsidere to sit down, lie in wait: cf. F. subside. See Subside.]
1. Support; aid; coöperation; esp., extraordinary aid in money rendered to the sovereign or to a friendly power. They advised the king to send speedy aids, and with much alacrity granted a great rate of subsidy. Bacon.
Note: Subsidies were taxes, not immediately on on property, but on persons in respect of their reputed estates, after the nominal rate of 4s. the pound for lands, and 2s. 8d. for goods. Blackstone.
2. Specifically: A sum of money paid by one sovereign or nation to another to purchase the coöperation or the neutrality of such sovereign or nation in war.
3. A grant from the government, from a municipal corporation, or the like, to a private person or company to assist the establishment or support of an enterprise deemed advantageous to the public; a subvention; as, a subsidy to the owners of a line of ocean steamships.
1 more senses
Syn. -- Tribute; grant. -- Subsidy, Tribute. A subsidy is voluntary; a tribute is exacted.
Shades of meaning
A subsidy is pecuniary aid directly granted by government to an individual or commercial enterprise, or money furnished by one nation to another to aid it in carrying on war against a common enemy. A nation grants a subsidy to an ally, pays a tribute to a conqueror. An indemnity is in the nature of things limited and temporary, while a tribute might be exacted indefinitely. A nation may also grant a subsidy to its own citizens as a means of promoting the public welfare; as, a subsidy to a steamship company. The somewhat rare term subvention is especially applied to a grant of governmental aid to a literary or artistic enterprise. Governmental aid to a commercial or industrial enterprise other than a transportation company is more frequently called a bounty than a subsidy; as, the sugar bounty. The word bounty may be applied to almost any regular or stipulated allowance by a government to a citizen or citizens; as, a bounty for enlisting in the army; a bounty for killing wolves. A bounty is offered for something to be done; a pension is granted for something that has been done.