Fiscal stress refers to financial pressures placed on a government from factors such as revenue shortfalls and taxing, and spending limitations.

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This is the correct definition of fiscal stress, where a government may struggle to meet its financial obligations due to a range of factors that affect its revenue and spending capabilities. These factors can include economic downturns, changes in tax policies, unfunded mandates, rising healthcare and pension costs, and increasing debt levels. Fiscal stress can have significant impacts on a government's ability to provide services to its citizens and maintain its infrastructure, and may require tough choices and reforms to address.

Fiscal Stress Refers to Financial Pressures Placed on a Government