What Is Subvention? Know How It Is Different From Subsidy

Subvention refers to a grant of money in aid or support, mostly by the government. The term finds mention in almost every Budget.

The government sometimes asks financial institutions to provide loans to farmers at below-market rates. The loss is usually made good through subventions.

National Rural Livelihoods Mission (NRLM)– Aajeevika - Interest Subvention Scheme has been introduced by the government for the welfare of rural livelihoods. Subsidy

A subsidy is financial aid given by the government or any other organisation to support a specific industry or group of people.

It is usually provided to help reduce the cost of a product or service, making it more affordable for consumers. Subsidies can be granted in the form of cash tax breaks, or reduced fees.

The goal of a subsidy is to promote the growth of a particular industry or to support a specific group of people.