A subsidy is a form of financial assistance paid by one government to another, or to individuals or groups within society. It can take many forms such as direct payments, tax breaks, or other benefits designed to help certain industries or activities. The goal of a subsidy is often to support economic growth, provide relief to those in need, or encourage specific behaviors or investments. Subsidies are commonly used by governments to support agriculture, renewable energy, and other sectors that may not be profitable enough to survive without assistance. However, the use of subsidies can also lead to distortions in markets, as well as debates about their effectiveness and fairness.