A tight budget refers to a financial plan that limits spending to a specific amount, often due to limited income or resources. Individuals, families, or organizations may create a tight budget to ensure they do not overspend and can meet essential expenses, such as housing, food, and utilities. In economics, a tight budget can also apply to government spending, where policymakers must allocate limited funds across various programs and services. This often requires prioritizing certain areas, such as healthcare, education, or infrastructure, while making cuts in others to maintain fiscal responsibility.