Fiscal Restraint

Definition

Fiscal restraint refers to government actions that aim to reduce budget deficits and control public spending. It involves measures such as cutting government spending or increasing taxes to achieve long-term fiscal sustainability.

Analogy

Think of fiscal restraint as putting your spending on a diet. Just like you might cut back on unnecessary expenses and tighten your budget to save money, fiscal restraint involves the government making tough choices to reduce spending and balance its books.

Related terms

Budget Deficit: The amount by which government expenditures exceed revenues in a given period.

Austerity Measures: Policies implemented by governments to reduce budget deficits, often involving cuts in public spending and social welfare programs.

National Debt: The total amount of money owed by the government due to past borrowing.