What is a subsidy?
Ignorance of some concepts and definitions maydeprive us of the opportunity to receive help or to have some benefit. "You need to charge a subsidy," you hear. But what is a subsidy? Fine? Tax? Or what contribution of money? "I do not need this at all," you think, refusing elementary support. Let's understand the concepts: what is a subsidy, to whom it is given, and what is necessary to obtain it.
Subsidy: definition of the concept
The word that came to us from the Latin languagemeans support or assistance of a material nature (monetary or in kind). This payment of benefits to the consumer at the expense of the state or local budget. Consumers can be legal entities and individuals.
Types of subsidies
- Subsidy as cash payments to physical andlegal entities (which do not act as budgetary institutions) from extrabudgetary (private) funds and budgets. Example: a housing subsidy is money given to an inhabitant from the state to pay utility bills.
- Subsidy as interbudgetary transfer is co-financing of the lower budget by higher-ups. Example: assistance to the federal budget to the regional budget, assistance to the regional budget to the local budget.
Subsidies are also direct and indirect.
- What is a direct subsidy? This is direct, direct, targeted financing of regions, enterprises, industries or programs. Example: retraining of staff; providing production with new technology.
- The indirect subsidy is the establishment of tax and other benefits; that is, it is indirect support through monetary policy, tax instruments and so on.
- Subsidies act as co-financing (subject to equity financing).
- Subsidies are of a targeted nature. That is, payments are always made for specific purposes, for other purposes, these payments do not apply (purchase of housing, payment of utilities, etc.).
- A subsidy is always a non-repayable payment (ina difference, for example, from a loan), that is, it is of a gratuitous nature. The refund will only be made if the subvention is paid (subventions - payments for strictly defined purposes), if these funds were used not for the purpose with which they were accrued (for example, money was paid for utilities, and money was spent on furniture. In this case, the money will be withdrawn).
What do you need for a subsidy?
It is impossible to say unequivocally, because now you know that the "subsidy" is a broad enough concept.
Here is an example of a list of documents needed to obtain a housing subsidy, that is, to help pay utility bills.
- Passports of all family members (if there are minors, then their birth certificates).
- Settlement documents, where: family composition; area of housing; expenses for housing and communal services; type of housing (public, cooperative or private); type of settlement (bed-place or living quarters).
- Inquiries about the income of the family (scholarships, pensions, salaries, etc.), all its members.
- Labor books (for non-working women with children under three years of age and non-working pensioners).
- References from the labor exchange (on receipt of unemployment benefits).
- Ownership of the residential premises (all supporting documents).
This is an example of what is necessary for a subsidy.
Let's sum up: a subsidy is the support of a certain subject who does not have the necessary sufficient funds for self-financing.