The subsidy comes from the Latin “subsidĭum” which means “aid, aid, protection” and the real Spanish academy determines it as “public assistance provision of an economic nature and of a determined duration”. The subsidy is the one that allows recognizing public aid based In a protection or utility of an economic nature, for example, it can be said that there is a disability allowance, for not having a job, among others.
In addition, the subsidy is a method that is responsible for stimulating consumption, production or assistance that is granted for a certain period, the subsidy can see the various purposes or orders that can be aimed at stimulating an established consumption already be it for a good or service, that means that the production of a good or service can be an economic aid for the course of a set period until the critical times are exceeded.
In this case, the states use this type of exercise in order to achieve a social goal where it is said that basic needs can yield to basic food baskets, but this is also delivered with the objective of benefiting them, either by the various reasons in which the productive or regional activities of the country can be defined.
The subsidy also states that it can be a common exercise where the government puts the subsidy on the various companies, so that these companies can be prevented from increasing their prices, because at the time that companies raise their prices they can cause problems in the consumption and in the day-to-day economy.
