Also found in: Dictionary, Thesaurus, Wikipedia.


a grant, aid, or subsidy, as from a government to an educational institution
Collins Discovery Encyclopedia, 1st edition © HarperCollins Publishers 2005
The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.



(Russian, subsidiia), a benefit, primarily in monetary form, granted by the state out of the state budget to local bodies of power, natural and juridical persons, and other states.

Subventions may be direct or indirect. In precapitalist formations, a subvention was primarily a form of financial aid to military allies. In the early stages of capitalism, the bourgeois state made broad use of direct subventions for the encouragement of national industry and the financing of military expenditures. Under imperialism, especially during the period of the general crisis of capitalism, various forms of indirect subvention have been the rule. Indirect subventions include the sale of nationalized enterprises to monopolies at artificially low prices, the acquisition of the output of monopolized enterprises (chiefly those in the military-industrial complex) at inflated prices, government purchase of the shares and unsold goods of bankrupt companies, tax privileges for the monopolies, and state guarantees and insurance of deposits and export credits.

Since World War II, subventions—in the form of “aid” to foreign countries—have been made on a large scale, primarily in order to prop up puppet regimes. They are used to restore the solvency of particular companies or whole branches of the economy, to stimulate the growth of capital-intensive industries, and to encourage the monopolies to expand foreign trade. Indirect subventions are paid out primarily through the mechanism of credit privileges, tax privileges, and high or low monopolistically set prices. Subvention in the capitalist countries is dictated by considerations of class and is subject to the interests of monopoly capital. The subventions paid out of the state budget place an added burden on the bulk of the taxpayers—the working people.

The socialist countries make no use of subventions.


The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
Mentioned in ?
References in periodicals archive ?
It would also be recalled that Governor Abiola Ajimobi at the inauguration of the governing councils of the tertiary institutions had said his government was desirous of increasing the subventions as soon as its renewed efforts to enhance its revenue base began to bear fruit.
Pour rappel, les chiffres officiels indiquent que la subvention du gaz butane, a elle seule, a coute a l'Etat 14 MMDH, au titre de l'annee 2014.
Gr'ce aux transferts electroniques, l'Alberta distribue les subventions plus rapidement aux organismes sans but lucratif.
Summary: New Delhi [India], July 5 (ANI): Around Rs 350 crore has been allocated for FY 2019-20 for two per cent interest subvention for all Goods and Services Tax (GST) registered Micro, Small and Medium Enterprises (MSMEs), on fresh or incremental loans, Finance Minister Nirmala Sitharaman said on Friday.
The JUSUN chairman expanded that the current crisis rocking the state judiciary was as a result of the non-payment of the workers' salary for five months as a result of the failure of the executive to release the subvention of the judiciary.
M2 EQUITYBITES-October 19, 2018--Indian central bank announces interest subvention for crop loans
BANKING AND CREDIT NEWS-October 19, 2018--Indian central bank announces interest subvention for crop loans
Global Banking News-October 19, 2018--Indian central bank announces interest subvention for crop loans