A budget crisis occurs when an individual, organization, or government faces a significant shortfall between income and expenses. This situation can lead to the inability to meet financial obligations, resulting in cuts to essential services, layoffs, or increased debt. In the context of a government, a budget crisis may arise from factors such as economic downturns, unexpected expenses, or mismanagement of funds. This can affect public services like education, healthcare, and infrastructure, impacting the overall well-being of the community and its residents.