key term - Austerity Measures

Definition

Austerity measures refer to policies implemented by governments to reduce government spending, increase taxes, and cut public services in order to address budget deficits or economic crises.

Related terms

Fiscal Policy: Fiscal policy refers to the use of government spending and taxation policies to influence the overall economy.

Structural Adjustment Programs (SAPs): Structural adjustment programs are economic policies imposed by international financial institutions on developing countries as conditions for receiving financial assistance.

Welfare State: A welfare state is a system in which the government plays a key role in protecting and promoting the economic well-being of its citizens through social programs, such as healthcare, education, and unemployment benefits.