I reckon it means that the service provider receives government funding to help provide an unprofitable public service at a reasonable or reduced price to the customer.
It means that a contribution is being made from someone other than you.
Essentially it just means it's cheaper. Depending on what it is, that 'contribution' could be from a governmental body or simply the business itself, in recognition of the finances of the intended beneficiary (eg. student, oap, etc). Or it could just be an incentive offered by someone like an employer.