Fiscal responsibility refers to managing public finances prudently, sustainably, and in the long-term public interest. Responsible fiscal management means: not spending beyond means, maintaining appropriate reserves for contingencies, keeping debt at sustainable levels, not deferring necessary investments in ways that burden future generations, being transparent about financial conditions and trade-offs, and making decisions based on sound analysis rather than short-term political convenience. Fiscal responsibility doesn't necessarily mean lowest possible taxes or spending—responsible management includes investing adequately in infrastructure and services that produce long-term value. It means acknowledging true costs of decisions, avoiding hidden liabilities, and leaving successor governments in no worse position than inherited. Credit rating agencies assess fiscal responsibility when assigning municipal credit ratings, and provincial oversight regimes may intervene when municipalities fail to manage responsibly.