The term "fiscal cliff" refers to a situation in which a country faces significant economic challenges due to its high budget deficit and large national debt. It is often used to describe a scenario where government spending exceeds revenue, leading to an unsustainable financial position that could result in a severe economic downturn if not addressed promptly. The phrase gained prominence during the debate over the United States' budget deficit and national debt in 2013, when it was feared that failure to reach a deal on reducing government spending would lead to sharp increases in taxes and significant cuts in federal programs, causing a major economic shock. While an agreement was eventually reached to avoid the most severe consequences of going over the fiscal cliff, the phrase has since become shorthand for any situation where a country faces serious financial challenges due to its budget deficit or national debt.