The term "austerity measures" in economic policy refers to government policies aimed at reducing budget deficits by cutting public spending, increasing taxes, or a combination of both. These measures are often implemented during times of economic crisis to restore fiscal stability but can lead to significant social impacts, including reductions in essential services and welfare. Austerity is often controversial, with critics arguing that it deepens economic hardships and contributes to social unrest, while proponents argue it is necessary for long-term economic recovery and stability.