Answer:
Government provides subsidies on products to promote economic efficiency, to ensure an equitable distribution of resources and to make up for any externalities caused by the market. Subsidies help businesses absorb the cost of producing goods, thereby keeping prices low and making the goods more affordable to consumers. They can also be used to encourage the production of new products or encourage the use of products that are seen as beneficial to the public. Subsidies can also indirectly benefit farmers and other producers, helping them remain competitive in the market.