fiscal emergency

A fiscal emergency occurs when a government faces a severe financial crisis that threatens its ability to operate and fulfill its obligations, such as paying bills, funding services, or meeting debt repayments. This situation can arise from factors like a significant drop in revenue, unexpected expenses, or economic downturns. To address a fiscal emergency, governments may take actions like cutting spending, raising taxes, or seeking financial assistance from other authorities. The goal is to restore financial stability and ensure that essential services and obligations continue to be met.