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Subsidy (1)
SUBSIDY (1)

Definition: Money that is paid by a government or an organization to reduce the costs of services or of producing goods so that their prices can be kept low.
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* All seven elements should be in.


1. Purposeful and necessary, in the opinion of payer.

2. Payment has a legal backing. That is, appropriate organs of government or organization have authorized expenditure.

3. Amount will be considered as realistic; substantial. That is, calculation that determines sum will be correct and services will be easily affordable or prices will be the cheapest possible.

4. Payment will be subject to periodic reviews. That is, changes in te economy or in the costs of production will lead to a change in policy or in the execution of reforms. In other words, payment will be sustainable for duration desired.

5. Availability of services and low prices, resulting from propped provision/production costs, does not lead to a dislocation in the overall economy of government or organization.

6. Money is paid timely and fully, before commencement of provision or production.

7. Quality of services or goods does not decline as a result of funding support, especially if or when paid late or piecemeal.
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