Central Governments provide many subsidies but here the focus is on the subsidy which is being provided to the SME (Small and Medium Scale Enterprises) units.
The government will grant a secured subsidy to someone because that individual is thought to need the particular profit in order to sustain an acceptable quality lifestyle. Well Survival payments and student loans are usually two common descriptions associated with this kind of security. An individual who has just lost his/her job or has just experienced serious injury and still cannot work. Government programs supply money to the people in these kinds of situations in order to make them back again on their feet. Student loans are also considered subsidies because students often have difficulty paying for their college fees. The government thinks that it is in its best interest to encourage students to study and graduate from college, in order to become productive workers, so the government will assist students in this way. This is the initiative built by the respective government for future success.