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What is the difference between a direct subsidy and a whopping subsidy?

What is the difference between reimbursements and a subsidy?

  • also, which one is cheaper for the government to provide? thank you!!

  • Answer:

    you travel from a place to other place spending your own money! this amount is returned to you then it is reimbursement that is an amount spent already as per rules and regulations is a reimbursement in subsidy it need not be an expenses and already incurred. for example exports you get subsidy it is purely a trade and you have no expenses except buying price and of course you get the same by selling along with a profit but the subsidy is for earning foreign exchange

shitman at Yahoo! Answers Visit the source

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well, S*man - reimbursement just pay you back what you spent, so long as you have receipts to prove it - a subsidy just reduces the cost you would have to pay - I can't see that these two would be the alternatives if talking about choosing an option for something - they are used in very different sitautions

Zarg222

They are entirely different things conceptually. A payment can be either, neither, or both. If the government reimburses me for a trip to the restaurant that is not government related, that is a subsidy. If they reimburse me for an expense I incur doing work for the government, that is reimbursement, but not subsidy. If they give me money not directly related to an amount I spent and not compensation for work I did for them, that is a subsidy. If they pay me for work I did for them, that is neither.

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