What are the government subsidies?

1, policy subsidy. This kind of subsidy is often because the state wants to achieve certain social benefits, and when it requires enterprises to make certain commitments or sacrifices, it gives enterprises specific compensation, which is related to the operation of enterprises; For example, in order to adjust the product prices of some enterprises closely related to the national economy and people's livelihood, the government gives policy subsidies to these enterprises to make up for their losses in product prices.

The production cost of these enterprises is influenced by the market. Price control and the marketization of product cost make it impossible for enterprises to match income and cost at the same level of the market, and their profitability is suppressed to varying degrees, and even some enterprises suffer losses. In addition, enterprises that use the three wastes to process products or treat the three wastes will inevitably generate more costs in order to assume the social responsibility of environmental protection, but the price of their products will not increase, so it will also affect the profitability of enterprises. For such enterprises, the government can only make up for the losses suffered by their normal operations due to the influence of policies in the form of subsidies.

2. Financial support subsidies. This kind of subsidy is the financial support provided by the government to enterprises from a certain aspect or with the help of an event, so as to promote the development of enterprises, rather than as a kind of compensation and reward for enterprises to suffer extraordinary losses or bear specific expenses, such as special funds for science and technology, special subsidies for high-tech industries, recognized high-tech achievements transformation projects, land use fees and land transfer fees returned by the government, and tax concessions given by the state to specific enterprises or specific industries in a certain period of time.

3. Donation subsidies. This kind of subsidy often exists in low-profit and loss-making enterprises, mostly non-policy, and its main purpose is to make enterprises turn losses into profits or make significant changes in profitability. For example, when listed companies suffer special treatment or are about to withdraw from the market for various reasons, in order to maintain their position in the capital market and promote local economic development, local governments often lend a helping hand to listed companies, giving financial subsidies or various tax incentives in various names.