Word
austerity
Meanings
a government policy of cutting public spending and/or raising taxes to reduce debt and deficits
a strict, simple way of living with very few comforts or luxuries
Definition
Austerity is a policy of reducing government spending to cut public debt.
Austerity usually refers to a government’s decision to reduce spending, raise taxes, or both in order to lower budget deficits and debt. It often happens after an economic crisis or when public finances are under pressure. People may experience it through cuts to public services and higher costs or taxes.
Examples
- The government announced austerity to reduce the deficit.
- Many families felt the effects of austerity on public services.
- Austerity measures led to cuts in healthcare spending.
- After the crisis, the country entered a long period of austerity.