Here is what the business term subsidy means

Organic Fertilizer Materials In Ghana, subsidies are provided on agricultural products

Mon, 6 Dec 2021 Source: www.ghanaweb.com

Subsidies are the opposite of taxes. Whiles taxes are imposed to make consumers pay more subsidies are provided to make them pay less.

Subsidies are a government's way of giving money to private firms or businesses to keep prices low, or, to protect the firm and businesses from collapse or running into losses.

Subsidies can either be a cash payment, or a specific tax cut. The money is granted by the state or a public body to help an industry or business keep the price of a commodity or service low.

There are direct and indirect subsidies. Direct subsidies are payments made directly to the firm while indirect payments occur when there is not a specific monetary amount.

Examples of items that are provided with subsidies include agricultural components, cars, fossil fuel, green energy, steel, transport etc.

In Ghana, subsidies are provided on agricultural products i.e. fertilizers, rice, etc to improve food production in the country.

Source: www.ghanaweb.com