Grant vs. Subsidy — What's the Difference?
By Tayyaba Rehman — Updated on September 14, 2023
A grant is a sum of money given for a specific purpose, often without expectation of repayment, while a subsidy is financial assistance to support or promote certain sectors or activities.
Difference Between Grant and Subsidy
Table of Contents
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Key Differences
A grant is typically a financial award bestowed upon an individual, organization, or entity for a specific purpose, such as research, projects, or education. Grants are often provided by governmental bodies, foundations, or institutions. On the other hand, a subsidy is a sum of money granted by the state or public body to help an industry or business keep the price of a commodity or service low.
Grants are generally specific in nature, targeting particular sectors or objectives, such as arts, science, or community development. A subsidy, however, is more general, aiming to promote or support broader sectors of the economy, like agriculture, energy, or housing.
When receiving a grant, the beneficiary typically doesn't need to repay the amount, as long as the funds are used for the intended purpose. In contrast, subsidies, though they don't necessarily require repayment, might have conditions attached, like maintaining certain price levels or achieving particular outcomes.
Grants and subsidies both serve as financial tools to foster growth, development, or stabilization. While grants often empower innovation, research, or specific projects, subsidies ensure stability, affordability, and the viability of certain sectors or commodities.
Comparison Chart
Purpose
Specific, e.g., research, education.
General, e.g., supporting an industry or commodity.
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Origin
Governments, institutions, foundations.
Primarily governmental bodies.
Repayment
Typically not expected.
Not expected, but conditions might apply.
Nature
Targeted financial award.
Financial assistance to stabilize or promote sectors.
Outcome Expectation
Completion of a project or research.
Stabilization or promotion of an industry or commodity.
Compare with Definitions
Grant
A financial award given for a specific purpose.
The university received a grant for cancer research.
Subsidy
A sum of money given to support or stabilize an industry.
The government provided a subsidy to the struggling farmers.
Grant
A privilege or right, officially given.
The company was granted permission to build on the site.
Subsidy
A monetary incentive to promote specific activities or sectors.
Renewable energy projects often receive a subsidy.
Grant
To allow or consent to the fulfillment of (something requested)
Grant permission to speak frankly.
Grant a request.
Subsidy
A grant by a government to assist a business sector.
The agricultural subsidy ensures that farming remains profitable.
Grant
To give or confer officially or formally
Grant voting rights to citizens.
Grant diplomatic immunity.
Subsidy
Financial assistance to ensure affordability.
The city offers a housing subsidy for low-income residents.
Grant
To transfer (property) by a deed.
Subsidy
Money provided to offset costs or prevent price escalation.
Without the transportation subsidy, bus fares would rise.
Grant
To concede; acknowledge
I grant that your plan is ingenious, but you still will not find many backers.
Subsidy
A subsidy or government incentive is a form of financial aid or support extended to an economic sector (business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from the government, the term subsidy can relate to any type of support – for example from NGOs or as implicit subsidies.
Grant
The act of granting.
Subsidy
Monetary assistance granted by a government to a person or group in support of an enterprise regarded as being in the public interest.
Grant
Something granted, especially a giving of funds for a specific purpose
Federal grants for medical research.
Subsidy
Financial assistance given by one person or government to another.
Grant
The document or provision in a document by which a grant is made.
Subsidy
Money formerly granted to the British Crown by Parliament.
Grant
One of several tracts of land in New Hampshire, Maine, and Vermont originally granted to an individual or a group.
Subsidy
Financial support or assistance, such as a grant.
Manufacturing firms are supported by government subsidies in some countries.
Grant
(ditransitive) to give (permission or wish)
He was granted permission to attend the meeting.
The genie granted him three wishes
Subsidy
(dated) Money granted by parliament to the British Crown.
Grant
(ditransitive) To bestow or confer, with or without compensation, particularly in answer to prayer or request; to give.en
Subsidy
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.
Grant
(transitive) To agree with (someone) on (something); to accept (something) for the sake of argument; to admit to (someone) that (something) is true.
Subsidy
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.
Grant
(intransitive) To assent; to consent.
Subsidy
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.
Grant
The act of granting; a bestowing or conferring; concession; allowance; permission.
Subsidy
A grant paid by a government to an enterprise that benefits the public;
A subsidy for research in artificial intelligence
Grant
The yielding or admission of something in dispute.
Grant
The thing or property granted; a gift; a boon.
I got a grant from the government to study archeology in Egypt.
Grant
(law) A transfer of property by deed or writing; especially, an appropriation or conveyance made by the government.
A grant of land or of money
Grant
The deed or writing by which such a transfer is made.
Grant
(informal) An application for a grant monetary boon to aid research or the like.
Grant
To give over; to make conveyance of; to give the possession or title of; to convey; - usually in answer to petition.
Grant me the place of this threshing floor.
Grant
To bestow or confer, with or without compensation, particularly in answer to prayer or request; to give.
Wherefore did God grant me my request.
Grant
To admit as true what is not yet satisfactorily proved; to yield belief to; to allow; to yield; to concede.
Grant that the Fates have firmed by their decree.
Grant
To assent; to consent.
Grant
The act of granting; a bestowing or conferring; concession; allowance; permission.
Grant
The yielding or admission of something in dispute.
Grant
The thing or property granted; a gift; a boon.
Grant
A transfer of property by deed or writing; especially, an appropriation or conveyance made by the government; as, a grant of land or of money; also, the deed or writing by which the transfer is made.
Grant
Any monetary aid
Grant
The act of providing a subsidy
Grant
(law) a transfer of property by deed of conveyance
Grant
Scottish painter; cousin of Lytton Strachey and member of the Bloomsbury Group (1885-1978)
Grant
United States actor (born in England) who was the elegant leading man in many films (1904-1986)
Grant
18th President of the United States; commander of the Union armies in the American Civil War (1822-1885)
Grant
A contract granting the right to operate a subsidiary business;
He got the beer concession at the ball park
Grant
A right or privilege that has been granted
Grant
Let have;
Grant permission
Mandela was allowed few visitors in prison
Grant
Give on the basis of merit;
Funds are granted to qualified researchers
Grant
Be willing to concede;
I grant you this much
Grant
Allow to have;
Grant a privilege
Grant
Bestow, especially officially;
Grant a degree
Give a divorce
This bill grants us new rights
Grant
Give over; surrender or relinquish to the physical control of another
Grant
Transfer by deed;
Grant land
Grant
An allocation of funds, often by a government, without expectation of repayment.
She received a grant to study art in Europe.
Grant
Money given to support a particular project or cause.
The nonprofit secured a grant for its literacy program.
Grant
A legal conveyance or transfer.
The city gave a land grant for the new park.
Common Curiosities
How does a Subsidy work?
A subsidy is financial assistance to support or promote certain sectors or activities.
Why are Subsidies important?
Subsidies help stabilize or promote sectors, ensuring affordability and viability.
Where do Grants commonly come from?
Grants often come from governmental bodies, institutions, and foundations.
What's the main objective of a Subsidy?
The main objective is often to support industries or keep prices of commodities/services low.
Do you have to repay Grants?
Generally, grants don't require repayment as long as they're used for their intended purpose.
Are Subsidies only provided by governments?
Primarily, yes, but other institutions might offer similar financial support under different terms.
Can individuals receive Grants?
Yes, individuals can receive grants for purposes like education, research, or specific projects.
How can a business qualify for a Subsidy?
Eligibility varies but usually depends on the industry, the economic impact, and the goals of the providing institution.
What is a Grant?
A grant is a sum of money given for a specific purpose, often without expectation of repayment.
Is a scholarship a type of Grant?
Yes, a scholarship is a grant awarded for educational purposes.
How do Subsidies affect prices?
Subsidies can lower costs for producers, often resulting in lower prices for consumers.
Can Grants support artistic projects?
Yes, many grants specifically target arts, culture, and creative projects.
Are Subsidies always beneficial?
While subsidies have benefits, they can sometimes distort markets or lead to dependency.
Do all grants have stipulations?
Most grants have stipulations ensuring the money is used for its intended purpose.
Do you need to report Grants on taxes?
Depending on the nature and purpose, grants might be taxable. Always consult with a tax professional.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
