Definitions
- Referring to a financial grant or aid given by a government or organization to support a specific project or activity. - Talking about a financial contribution provided to a non-profit organization or charity to help them achieve their goals. - Describing a monetary assistance given to a company or industry to promote growth and development.
- Referring to a financial aid or support given by a government or organization to maintain the price of a commodity or service. - Talking about a monetary assistance provided to a business or industry to help them compete in the market. - Describing a financial contribution given to an individual or group to help them afford basic necessities.
List of Similarities
- 1Both subvention and subsidy involve financial assistance.
- 2Both are forms of support given by a government or organization.
- 3Both can be used to promote growth and development.
- 4Both can be given to businesses, organizations, or individuals.
- 5Both aim to provide financial aid to achieve a specific goal.
What is the difference?
- 1Purpose: Subvention is given to support a specific project or activity, while subsidy is given to maintain the price of a commodity or service.
- 2Target: Subvention is often given to non-profit organizations, research teams, or industries, while subsidy is often given to businesses or individuals.
- 3Impact: Subvention aims to promote growth and development, while subsidy aims to maintain affordability and competitiveness.
- 4Scope: Subvention is often limited to a specific project or activity, while subsidy can be ongoing and cover a wider range of needs.
- 5Usage: Subvention is less common and more formal than subsidy, which is more commonly used in everyday language.
Remember this!
Subvention and subsidy are both forms of financial assistance given by a government or organization. However, the difference between subvention and subsidy is their purpose and target. Subvention is given to support a specific project or activity, while subsidy is given to maintain the price of a commodity or service. Additionally, subvention is less common and more formal than subsidy, which is more versatile and commonly used in everyday language.
