What does fiscally conservative mean?

Fiscal conservatives are in favor of a balanced budget and less government spending. In today's political climate this means a reduction in the national debt, along with fewer government services, probably including higher taxes to pay for commitments already made.

Sometimes people of a conservative bent may actually be less fiscally conservative than more liberal people. That is because conservatives will dedicate more of their budgets to the armed forces and law enforcement, sometimes unbalancing the budget in the process. A more politically liberal person may actually be fiscally conservative if they are in favour of balancing the budget and reducing government spending by slashing the defence budget.