expert
Expert with best answer

Vlad

97% Recommendation Rate

388 Meetings

7,398 Q&A Upvotes

USD 299 / Coaching

1

Government subsidy: cost cuting measure or revenue enhancement?

Hello all,

Just to clarify one point: is it wrong to mention public funds as a way to cut down costs?

Technically this would be another revenue stream, but can be justified by specific cost cutting purposes (ex: subsidy for the investement costs of a company willing to enter the renewable energy market)?

Thanks you very much for your insights,

Best

Marie-Eve

Hello all,

Just to clarify one point: is it wrong to mention public funds as a way to cut down costs?

Technically this would be another revenue stream, but can be justified by specific cost cutting purposes (ex: subsidy for the investement costs of a company willing to enter the renewable energy market)?

Thanks you very much for your insights,

Best

Marie-Eve

1 answer

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Book a coaching with Vlad

97% Recommendation Rate

388 Meetings

7,398 Q&A Upvotes

USD 299 / Coaching

Hi,

It depends on who is your client.

  • For a private company, it will be just a part of revenues that otherwise would be paid by the end user.
  • For a government-owned company or a public-private partnership, it may be a decrease in revenues. Imagine government subsidizing the subway tickets for veterans. If the subway is not privately owned - government most probably will subsidize less than a regular ticket price.
  • I can't imagine a case when government subsidies will be a cost-cutting tool

Best,

Vlad

Hi,

It depends on who is your client.

  • For a private company, it will be just a part of revenues that otherwise would be paid by the end user.
  • For a government-owned company or a public-private partnership, it may be a decrease in revenues. Imagine government subsidizing the subway tickets for veterans. If the subway is not privately owned - government most probably will subsidize less than a regular ticket price.
  • I can't imagine a case when government subsidies will be a cost-cutting tool

Best,

Vlad