I understand that subsidies are from the government to fund things that they want to promote, but where exactly do they get the money from? Is it from tax income?
In: Economics
Governments get their money from two general sources:
1. Taxes (which can be income, fee, sales, or asset taxes).
2. Borrowing which will have to be repaid with future tax money. The goal is often to repay with tax money on the economic activity generated from current subsidized project.
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