Legal Definitions - subvention

A subvention refers to a grant of financial aid or assistance, typically provided by a government or other authoritative body, to support a particular project, institution, or activity that is deemed to be in the public interest or serves a specific policy goal. It is essentially a form of subsidy.

• Example: A municipal government provides a significant annual subvention to its public library system to ensure free access to books, digital resources, and educational programs for all residents.

  Explanation: This illustrates a subvention because the city government is offering direct financial assistance to the library system. This funding enables the library to maintain services, acquire new materials, and operate without relying solely on user fees or private donations, reflecting the city's view of the library as a vital public service.

• Example: A national arts council offers a substantial subvention to a non-profit theater company to help fund the production of new, experimental plays and offer discounted tickets to students.

  Explanation: Here, the arts council is providing financial aid to a cultural institution. This subvention supports the theater company's artistic endeavors and makes cultural experiences more accessible, aligning with the council's mission to promote arts and culture.

• Example: To encourage the development of sustainable agriculture, a federal agency establishes a subvention program for farmers who adopt environmentally friendly farming practices, such as organic farming or water conservation techniques.

  Explanation: This demonstrates a subvention as the federal agency is giving financial assistance to private farmers. The funds help offset the costs associated with implementing new, sustainable practices, thereby incentivizing farmers to contribute to broader environmental and agricultural policy goals.