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What is a subsidy?

What is a subsidy? Here are some definitions.

Noun
  1. Financial support or assistance, such as a grant.
  2. (dated) Money granted by parliament to the British Crown.
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Examples
The operators later changed their minds after the administration rejected their demand for the subsidy.
But already there's a note of warning from those accused of maladministering the subsidy.
Writers would also like to see more subsidy for Scottish publishers, and for the arts and literature in general.
Spring linseed lags some way behind now that the subsidy it attracts has been reduced.
He urged processors to bring in a subsidy on ration to help farmers' meet extra feed costs.
Does it make sense to give each of us a subsidy, when we can perfectly well afford the full price?

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