Fiscal retrenchment is a term that you are going to hear a lot more about in the coming years. In short it means that a government has to introduce deflationary fiscal measures designed to reduce the amount of borrowing and debt that has been run up during the downturn and economic/financial crisis.
http://www.tutor2u.net/blog/index.php/economics/comments/qa-what-is-fiscal-retrenchment/#extended
