A large number of countries are using tax subsidies as a form of state influence on the economy. Although the amount of subsidies in an economy is difficult to accurately measure, it does appear that they relate to several percent of gross domestic product. Thus, in the European Union explicit subsidies are on average three percent of gross domestic product and this post about 10 percent of total budgetary expenditures.

The range of economic policy that results in formation of state subsidies is very wide, and therefore they can have a different meaning and a different scope for different individuals. In the broadest sense, subsidies can be defined as state aid to producers or consumers for which the state does not receive any revenue-but it is conditioned by a special kind of activity or behavior of the recipient. A producer who has received a subsidy lowers their production costs, while consumers who receive a subsidy from the state increases its disposable income.

Tax subsidies can be explicit (if they represent an immediate cash outlay), or implicit, (if the immediate cash outlay is not present). Direct cash transfer from the state budget to a branch of an individual makes a direct and explicit subsidies. But, for example, lower interest rates on loans that are provided, whose branches are developing plans to raise an implicit, are indirect and hidden subsidies. In various countries both forms are widely used, therefore it is worthwhile to study the grants including not only direct subsidies as part of the current expenditure budget, but also its hidden forms.