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An excuse to not hang out with someone. Also, a nice way of saying no.
John: "Hey, wanna hang out?"
Bobby; " Sorry, I'm busy"

Mary "Hey, wanna hang out this weekend?"
Henry: " I wish i could but I am busy"
I'm busy by Boston95 June 4, 2016
\ˈīm ˈbi-zē\

I have a priority list. . . You're not on it.
"Can you help me work something out? I really need a friend for a minute"

I really want to but I'm just so busy with work and school and family; I'm busy.
I'm busy by His Royal Majesty January 6, 2012
\ˈīm ˈbi-zē\

I have a priority list.

You're not on it.
"Could you help me for just an hour or so? I really need a friend"

I really wanted to be there for you but I'm busy with work and school and family.
I'm busy by His Royal Majesty January 6, 2012

I’m Busy 

A phrase often used by someone who does not want to go on a date or otherwise hang out with you, but does not want to hurt your feelings. The truthfulness and frequency of this statement depends mostly on whoever’s asking.

(See also: I have a boyfriend/I have a girlfriend)
Gus: We should hang out sometime, are you available any time in the next five years?
Amy: Um, no, I’m busy, like REALLY busy.
Gus (to self): Here we go again...
I’m Busy by Rage against the meme November 19, 2019

I’m busy 

Person 1: hey you want to come over

Person 2: sorry I can’t I’m busy

Person 1: ok that’s fine
I’m busy by Vacuum March 21, 2019

[I'm busy as a lizard drinkin] 

Australian colloquial term.
People who are busy as a lizard drinking are doing absolutely nothing!
Lizards don't drink.
Hey mate can you give me a hand?
Nar Mate "I'm busy as a lizard drinkin...."