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two-for-one
manager/head of
Mar 10, 2005 10:29
19 yrs ago
9 viewers *
English term

grant vs subsidy

English Bus/Financial International Org/Dev/Coop vocabulary
I deal with a text about infrastructure investments in Post Conflict Countries.
The UN and donors countries help NGOs to perform such investments (at a local scale) by funding them money.

Both terms are used (grant & subsidy) - Is there any difference in this context?

TIA
Responses
3 +6 A grant is a particular type of subsidy.
5 Overlooked difference: Please read
4 gift versus financial assistance (see ntoe)
4 gift vs assistance
3 see

Discussion

Derek Gill Franßen Mar 10, 2005:
And I would like to know what the distinction is between a "grant subsidy" and a "subsidy grant" (both of which I found while looking for a reasonable answer o this question). ;-)

Responses

+6
14 mins
Selected

A grant is a particular type of subsidy.

"Grants. The amount of a subsidy received through a grant is the amount of the grant itself. Grants are considered non-recurring subsidies that confer a benefit when the grant is received." (cf. http://www.adcvd.com/TypesofSubsidies.htm).
:-)

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Note added at 17 mins (2005-03-10 10:46:58 GMT)
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I would define \"subsidy\" simply as \"financial aid usually provided by the government.\"
Peer comment(s):
agree Elena Petelos
7 mins
Thanks Elena.
agree Philippe C. (X)
32 mins
Thanks Philippe.
agree Ken Cox : A grant is an outright gift, donation, or whatever; a subsidy can take many forms and typically extends over a length of time.
1 hr
Exactly. Thank you Kenneth. :-)
agree Alexander Demyanov
8 hrs
Thanks Alexander.
agree Jörgen Slet : and with Ken
10 hrs
Thank you Jörgen.
agree Emilie Laferrière : exactly that
11 hrs
Yes, thank you Emilie. :-)
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4 KudoZ points awarded for this answer. Comment: "Thank you very much to all of you for your wise suggestions, answers and notes"
5 mins

gift versus financial assistance (see ntoe)

Doesn't a grant usually imply money or land (or property)that is actually awarded (as gift) that does not need to be repaid, while a subsidy is in the form of financial assistance not so much awarded as a gift per se but could be as discounts on prices to be paid, etc.
Peer comment(s):
neutral humbird : You are right on Grant (no need to repayment, it is a gift in essense), but Loan must be repaid, with interest.
12 hrs
Right, but typically grants are not really loans (99.9 % of the time they are gifts)
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7 mins

see

grant-funding for a nonprofit organization, usually for a specific project.
subsidy-financial aid given by the government to individuals or groups, to the private sector
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3 hrs

gift vs assistance

grant - gift (as of land or money) for a particular purpose

subsidy - a grant by a government to a private person or company to assist an enterprise deemed advantageous to the public
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2 days 15 hrs

Overlooked difference: Please read

A grant is paid once only. It is a one-off payment. A subsidy is usually ongoing - paid over a period of time conditional that the recipient meets the requirements (e.g. below certain income level, economically disadvantaged, involved in a projevt of public interest, etc.). A grant may be viewed as a form of subsidy just broadly speaking but this is the difference that distinguishes grants from subsidies.

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