Other Subsidies on Products
Other subsidies on products consist of subsidies on goods or services produced as the outputs of resident enterprises, or on imports, that become payable as a result of the production, sale, transfer, leasing or delivery of those goods or services, or as a result of their use for own consumption or own capital formation.
The most common types are the following:
- a. Subsidies on products used domestically;
- b. Losses of government trading organizations;
- c. Subsidies to public corporations and quasicorporations$.
- d. Subsidies resulting from the central bank accepting a lower rate of interest than the market rate.