What does fiscal austerity mean?

Fiscal austerity refers to government policies aimed at reducing budget deficits through spending cuts, tax increases, or a combination of both. These measures are often implemented during economic downturns or when a country faces high levels of debt. The goal is to restore fiscal balance and promote long-term economic stability, though such policies can also lead to public discontent and social unrest due to reduced public services and welfare. Critics argue that austerity can hinder economic growth and recovery in the short term.