'budget-cutting' originates from the English words 'budget' and 'cutting', where 'budget' meant 'a financial plan' and 'cutting' meant 'reducing or decreasing'.

'budget' changed from the Old French word 'bougette' meaning 'small bag', and 'cutting' from the Old English 'cyttan', eventually forming the modern English term 'budget-cutting'.

Initially, it meant 'reducing financial allocations', and this meaning has largely remained the same in modern usage.