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Governments worldwide collect direct and indirect taxes from citizens. Part of the money is spend directly in providing services and infrastructure. Some part of  it  is available as funding - grants for certain projects, subsidies or low interest loans. In many countries, the funding allocated for these grants and loans remains unutilized due to lack of  proposals.   

Funding is usually available to non- profit organizations for projects which will benefit the particular region.

The following categories are the main recipients of funding and loans

1. Education : Most governments will offer scholarships to students who have an excellent academic record for studies in state funded universities. Financial assistance is also available to students whose family income is below a certain limit.

2.Research:  Research and development of  any new product and technology is expensive and may not yield immediate results. Governments will often provide funds to scientists for finding solutions for widespread problems. Defense and related projects, where a nation's security is at stake, also have funds set aside.

3. To remove social inequalities:  In areas with high rates of  unemployment, the government will offer grants to entrepreneurs who start businesses in these areas. However  the government will only fund part of  the project cost, the entrepreneur has to fund the remaining part of  the project.